Please study Walt Disney Corporation spreadsheet financial data attached and calculate & discuss the following topics:

1.Calculate the Leverage=Equity/Assets=Net assets/Total assets between 1979-1983 (ratio analysis sheet/excel and selected financial data sheet).

2.Discuss the EPS changes between 1965 to 1983. Which one was the highest (ratio analysis)?

3.Calculate the net margin (%) =net income/total revenue between 1981-1983 (income statement).

4.Analyze and summarize the "income before taxes" changes and taxes % between 1981-1983 (income statement).

HINT: Use Walt Disney Financial Report and the Spreadsheet, Walt Disney (ratio analysis) attached below

A B C D E F G H K L M N P R S T U Exhibit 6 WALT DISNEY PRODUCTIONS, JUNE 1984 Ratio Analysis by Year 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 Pretax margin 20.24% 20.13% 17.31% 19.36% 21.91% 26.16% 27.63% 22.58% 22.12% 20.59% 23.26% 24.01% 24.98% 25.57% 26.84% 27.12% 21.59% 17.35% 12.50% X Asset turnover 1.41 1.25 1.08 0.97 0.74 0.66 0.46 0.60 0.60 0.61 0.68 0.71 0.69 0.72 0.67 0.68 0.62 0.49 0.55 = Pretax return on assets 28.53% 25.15% 18.73% 18.72% 16.12% 17.28% 12.69% 13.44% 13.22% 12.46% 15.81% 16.93% 17.12% 18.51% 17.88% 18.40% 13.48% 8.50% 6.86% X (1 - tax rate) 0.51 0.53 0.55 0.49 0.49 0.50 0.55 0.54 0.56 0.55 0.53 0.53 0.52 0.52 0.53 0.55 0.56 0.56 0.57 = After-tax return on asse 14.59% 13.28% 10.38% 9.24% 7.84% 8.60% 6.99% 7.28% 7.42% 6.80% 8.30% 9.01% 8.92% 9.61% 9.51% 10.03% 7.55% 4.76% 3.91% / Leverage (equity/assets) 0.61 0.64 0.66 0.59 0.59 0.72 0.70 0.70 0.75 0.74 0.77 0.79 0.80 0.80 = After-tax return on equi 24.05% 20.88% 15.78% 15.65% 13.36% 11.94% 9.96% 10.34% 9.88% 9.13% 10.78% 11.38% 11.20% 12.05% #DIV/O! #DIV/O! #DIV/O! #DIV/O! #DIV/ON Dividend payout rate 6.46% 6.22% 7.21% 9.62% 8.28% 7.65% 8.84% 6.84% 7.18% 7.21% 5.75% 4.90% 5.77% 10.44% 13.68% 17.31% 26.88% 39.87% 44.44% EPS $0.63 $0.67 $0.59 $0.67 $0.79 $0.90 $1.00 $1.42 $1.64 $1.66 $2.00 $2.41 $2.53 $3.04 $3.51 $4.16 $3.72 $3.01 $2.70 Beta NA NA NA NA NA NA NA NA 1.23 1.35 1.45 1.50 1.55 1.50 1.40 1.35 1.15 1.05 1.00 Rate on one-year T-Bills 4.06% 5.07% 4.71% 5.45% 6.79% 6.49% 4.67% 4.77% 7.01% 7.71% 6.76% 5.88% 6.09% 8.34% 10.67% 12.05% 13.16% 11.10% 8.86% Pretax margin X Asset turnover = Pretax return on assets X (1 - tax rate) = After-tax return on asset is1952 Revenues TI Entertainment & recreation $1,031 202 5725,610 5691,611 Motion pictures 165.453 202,102 196,806 19 Consumer products & other 1 10,697 102,538 1 16,423 14 Total revenue's 1.307 357 1,030 250 1,005040 Costs & expenses of operations 17 Entertainment & recreation 834.324 592.965 562.317 Motion pictures 196,843 182.463 162, 150 Consumer products & other 53,615 54.706 65.859 Total costs & experses 1,086 982 $30,134 790.376 21 Operating income before corporate Entertainment & recreation 196,878 132.645 129,474 Motion pictures 133.365 19.619 34.616 Consumer products & other 56,852 47.832 50,564 Total operating income before corporate 220.375 200,116 214,654 Corporate expenses General & administrative 35.554 30,957 26,216 IE Design projects abandoned 7,295 5.147 4.598 Interest expense ( income)-net 14,056 83.130 Total corporate expenses 56.915 21.323 (2.316) Income before taxes 163,450 176, 793 216,950 Taxes 70,300 78, 700 95.501 Net income 593,160 5100,093 5121.450 Earnings per share 5101 51 72 Capital Expenditure Entertainment and recreation 5287,940 5645,632 5344,361 Motion pictures 1,845 2,794 4.040 Consumer products and other 212 207 Corporate 1.195 273 45 Depreciation expense: Entertainment and recreation 86.059 40.078 37.313 45 Motion pictures 1,643 1,517 1,200 Consumer products and other 135 118 155 Corporate 347 204 Identifiable assets: Entertainment and recreation 2,018 787 1,808 731 1,141 657 Motion pictures 180,201 146,317 157,106 Consumer products and other 37.351 34,129 39.219 Corporate 144.826 113,619 272,007