a. Calculate and disaggregate Disney?s return on common equity for each of the two fiscal years ending September 30, Year 9, and September 30, Year 13 (use year-end figures for any ratio computations typically using averages).

b. Drawing only on your answers to a and the data available, identify the two components that contributed most to the observed change in Disney?s return on common equity between Year 9 and Year 13. State two reasons for the observed change in each of the two components.

CHECK

(a) Yr. 13 RNOA = 11.82%

(b) Yr. 13 Spread = 15.34%