The above data are obtained from Yahoo finance on the stock of Disney (DIS)- 13. Now is the above beta of Dis calculated? Covariance of the returns of DIS and the market over the variance b. Variance of the DIS over the covariance of Drs and the market e. Regression of risk of the S&P500 on the risk of DIS d. Regression of return of DIS on the return of the S&P500 e Regression of market risk premium on the return of DS 14. What affects the beta of DIS? a. The fact that DIS is affected by the US unemployment rate b. The fact that it is affected by progress of Six F c The fact that DIS has one of the Disney family on the board of directors d. The fact that DIS do not expand in third world countries e. The fact that DIS has a major investment in Europe lags entertainment 15. For DIS: a. It should use less debt because beta of DIS is too low b. It should use more debt because DIS is largest in its industry c It should use less debt since it is in the risky entertainment and media industry d. It should use more debt because debt increases profitability margins e. The debt use is independent of firm risk. 16. What is DIS's cost of equity? 10.00% 11.75% 12.28% 13.71% 14.55% a, b. c. d. e. 17. What is DIS's asset beta? a. 1.15 b. 1.23 c. 1.37 d. 1.48 e. 1.55 The above data are obtained from Yahoo finance on the stock of Disney (DIS)- 13. Now is the above beta of Dis calculated? Covariance of the returns of DIS and the market over the variance b. Variance of the DIS over the covariance of Drs and the market e. Regression of risk of the S&P500 on the risk of DIS d. Regression of return of DIS on the return of the S&P500 e Regression of market risk premium on the return of DS 14. What affects the beta of DIS? a. The fact that DIS is affected by the US unemployment rate b. The fact that it is affected by progress of Six F c The fact that DIS has one of the Disney family on the board of directors d. The fact that DIS do not expand in third world countries e. The fact that DIS has a major investment in Europe lags entertainment 15. For DIS: a. It should use less debt because beta of DIS is too low b. It should use more debt because DIS is largest in its industry c It should use less debt since it is in the risky entertainment and media industry d. It should use more debt because debt increases profitability margins e. The debt use is independent of firm risk. 16. What is DIS's cost of equity? 10.00% 11.75% 12.28% 13.71% 14.55% a, b. c. d. e. 17. What is DIS's asset beta? a. 1.15 b. 1.23 c. 1.37 d. 1.48 e. 1.55
