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In the WACC Sensitivity tab on the accompanying spreadsheet, alter the cells as described below to see how changes to WACCs inputs impact the WACC.

In the WACC Sensitivity tab on the accompanying spreadsheet, alter the cells as described below to see how changes to WACCs inputs impact the WACC. Write a few sentences describing each change.

FED RATE INCREASE

An increase of the Federal Reserve interest rate by 200 basis points (2.0%) lifts the borrowing costs of every debt issuer. What is Disney's adjusted WACC? with justifications and explanations.

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Fed Rate Move Disney Six Flags 0.96 9.6% 9.6% 2.4% 2.4% 21.8% 24.2% 3.0% 4.2% A B+ 248,699 4,190 21,923 19 36,311 2,467 306,933 6,676 7.9% 6.3% 0.89 Fed Rate Move Disney Six Flags 0.96 9.6% 9.6% 2.4% 2.4% 21.8% 24.2% 3.0% 4.2% A B+ 248,699 4,190 21,923 19 36,311 2,467 306,933 6,676 7.9% 6.3% 0.89

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