The Walt Disney Company had sales over the period 1981 through 1990 as follows:

Source: Value Line Investment Survey, various issues

a. Looking at the trend of Disney’s sales over this period, what sales do you predict for 1991? 1992?

b. What factors do you consider important in predicting Disney’s future sales?

c. Disney had the following results for the years 1991 through 1997:

How do these amounts differ from those you predicted based on the 1981–1990 data? Is this rate of growth in the later period different from the rate of growth in the earlier (1981–1990) period? What company-specific events explain the changes in the growth in sales?

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Year Sales (in millions) Year Sales (in millions) 1981 $1,005 1986 $2,471 1982 1,030 1987 2,877 1983 1,307 1988 3,438 1984 1,656 1989 4,594 1985 2,015 1990 5,844