Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please full out the yellow boxes Below we present the segment data reported by Disney. Disney is not a diversified conglomerate in the traditional sense.
please full out the yellow boxes
Below we present the segment data reported by Disney. Disney is not a diversified conglomerate in the traditional sense. Disney operates multiple divisions as independent profit centers. However, there is actually a significant amount of synergy across these business units. Disney's content and characters are used across all business units. The business with the least linkages to other businesses is Cable Network, experiencing declining Revenues and Profit Margins. Forecasts of multi-segment businesses are developed as the sum of the parts of the individual businesses. This is accomplished by: Individually forecast the income Statement down to EBrT of each business. In aggregate forecast the Balance Sheet and related income Statement accounts (Net interest, Taxes). Below are the segment financial data reported by Disney: (1) Forecast Revenues for FY 2022E using the 2014-2018 CAGR. Hint: Forecasting 2022E Revenues 4 years out may be calculated as last Year (1+CAGR)4. (2) Forecast the EBIT Margin for FY 2022E by applying the average expansion rate to the FY 2018 actual figures: Hint: The expansion rate is the average increase or decrease in the percentage each year. Hint: If the Margin is 10% for the last actual year and the expansion rate is +1%, the margin two years later would be (21)+10%=12%. (3) Forecast EBIT for FY 2022 E by multiplying the Revenue forecast by the EBIT Margin Forecast. (4) Calculate the EBIT percentages (easyl). Vollal You have created a forecast like a working financial analyst. (On Wall Street, a Disney analyst might not simply apply the recent trend but would add a perspective that might accelerate, decelerate or reverse the trend) x Strategic Financlal Analysis \& Modeling Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started