Case Study Assessment: Walt Disney Company

This is a challenging activity. You should prepare to spend substantial time working on your response. Be sure to show your work for each calculation; simply providing the answer is insufficient.

BUSINESS SEGMENT DATA Years Ending September 30 WALT DISNEY COMPANY Wabilities are considered operating, as is the Euro Disney loss. a Calculate and disaggregate Disney's retum 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 retum 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) Yr113 Spread =15.34% BUSINESS SEGMENT DATA Years Ending September 30 WALT DISNEY COMPANY Wabilities are considered operating, as is the Euro Disney loss. a Calculate and disaggregate Disney's retum 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 retum 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) Yr113 Spread =15.34%