the data is below

O Use the Terminal Tutorial to calculate Disney's weighted average cost of capital (WACC) for Q1 2019. Bloomberg includes more elements in the WACC calculation than the textbook does. For our purposes, use the textbook formula with the data points from Bloomberg. Use the Bloomberg Terminal to gather the necessary data to make a similar calculation for Q2 2019. 3 Using the Case Study Notes and the accompanying spreadsheet, calculate the WACC of each Disney segment comparable. Describe the primary WACC drivers that explain the differences between the WACC of Disney and its comparables. WAAC ELEMENTS OF DISNEY Q2 2019 ALL DATA Metric Beta Expected Return of the Market Risk Free Rate Tax Rate Pre-Tax Cost of Debt Value 0.88 9.64% 2.41% 21.83% 2.99% Metric Equity Preferred Equity Short-Term Debt Long-Term Debt Total Capital Value 197,744 0 19,158 37,803 254,705 WACC Cost of Capital Components Expected Return Risk Free Pre-Tax of Market Rate Tax Rate Debt Cost Bond Rating Capital Structure Components Short-Term Long-Term Equity Debt Debt Total Capital Beta Target Disney 0.96 9.6% 2.4% 21.8% 3.0% . 248,699 21,923 36.311 306,933 Parks and Resorts Six Flags B+ 19 0.89 0.77 9.6% 9.6% 2.4% 2.4% 24.2% 17.0% 4.2% 4.8% 4,190 2,699 2,467 2,150 6,676 4,857 Cedar Fair B+ 8 Studio Entertainment Lions Gate 1.21 9.6% 2.4% 0.0% 4.3% B- 2,666 439 2,838 5,943 Broadcasting and Media Viacom 1.1 Netflix 1.46 9.6% 9.6% 2.4% 2.4% 22.0% 17.7% 4.5% BBB- 2.6% BB- 12,059 160,826 320 138 8,638 13,541 21.017 174,505 Consumer Products ULTA Sally Beauty Game Stop 0.86 0.81 0.92 9.6% 9.6% 9.6% 2.4% 2.4% 2.4% 22.7% 25.7% 23.5% 2.5% 6.9% 5.9% BB BB- 20,034 1,603 918 211 21 250 1,654 1,560 1,022 21,899 3,184 2,190 Scenario Changes WACC Cost of Capital Components Expected Return Risk Free Pre-Tax of Market Rate Tax Rate Debt Cost Bond Rating Capital Structure Components Short-Term Long-Term Total Equity Debt Capital Beta Debt Target Disney Six Flags 0.96 0.89 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% Fed Rate Move Disney Six Flags 248,699 0.96 0.89 9.6% 9.6% 2.4% 2.4% 21.8% 24.2% 3.0% 4.2% . B+ 21,923 19 36,311 2,467 306,933 6,676 7.9% 6.3% 4,190 Credit Rating Change Disney 0.96 Six Flags 0.89 248,699 9.6% 9.6% 2.4% 2.4% 21.8% 24.2% 3.0% 4.2% . B+ 21,923 19 36,311 2,467 306,933 6,676 7.9% 6.3% 4,190 Additional Debt for Fox Acquisition Disney 0.96 9.6% 0.89 9.6% 248,699 2.4% 2.4% 21.8% 24.2% 3.0% 4.2% . B+ 21,923 19 36,311 2,467 Six Flags 306,933 6,676 7.9% 6.3% 4,190 Bear Stock Market Disney 0.96 Six Flags 0.89 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% Tax Rate Increases Disney 0.96 Six Flags 0.89 9.6% 7.9% 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 9.6% 6.3% O Use the Terminal Tutorial to calculate Disney's weighted average cost of capital (WACC) for Q1 2019. Bloomberg includes more elements in the WACC calculation than the textbook does. For our purposes, use the textbook formula with the data points from Bloomberg. Use the Bloomberg Terminal to gather the necessary data to make a similar calculation for Q2 2019. 3 Using the Case Study Notes and the accompanying spreadsheet, calculate the WACC of each Disney segment comparable. Describe the primary WACC drivers that explain the differences between the WACC of Disney and its comparables. WAAC ELEMENTS OF DISNEY Q2 2019 ALL DATA Metric Beta Expected Return of the Market Risk Free Rate Tax Rate Pre-Tax Cost of Debt Value 0.88 9.64% 2.41% 21.83% 2.99% Metric Equity Preferred Equity Short-Term Debt Long-Term Debt Total Capital Value 197,744 0 19,158 37,803 254,705 WACC Cost of Capital Components Expected Return Risk Free Pre-Tax of Market Rate Tax Rate Debt Cost Bond Rating Capital Structure Components Short-Term Long-Term Equity Debt Debt Total Capital Beta Target Disney 0.96 9.6% 2.4% 21.8% 3.0% . 248,699 21,923 36.311 306,933 Parks and Resorts Six Flags B+ 19 0.89 0.77 9.6% 9.6% 2.4% 2.4% 24.2% 17.0% 4.2% 4.8% 4,190 2,699 2,467 2,150 6,676 4,857 Cedar Fair B+ 8 Studio Entertainment Lions Gate 1.21 9.6% 2.4% 0.0% 4.3% B- 2,666 439 2,838 5,943 Broadcasting and Media Viacom 1.1 Netflix 1.46 9.6% 9.6% 2.4% 2.4% 22.0% 17.7% 4.5% BBB- 2.6% BB- 12,059 160,826 320 138 8,638 13,541 21.017 174,505 Consumer Products ULTA Sally Beauty Game Stop 0.86 0.81 0.92 9.6% 9.6% 9.6% 2.4% 2.4% 2.4% 22.7% 25.7% 23.5% 2.5% 6.9% 5.9% BB BB- 20,034 1,603 918 211 21 250 1,654 1,560 1,022 21,899 3,184 2,190 Scenario Changes WACC Cost of Capital Components Expected Return Risk Free Pre-Tax of Market Rate Tax Rate Debt Cost Bond Rating Capital Structure Components Short-Term Long-Term Total Equity Debt Capital Beta Debt Target Disney Six Flags 0.96 0.89 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% Fed Rate Move Disney Six Flags 248,699 0.96 0.89 9.6% 9.6% 2.4% 2.4% 21.8% 24.2% 3.0% 4.2% . B+ 21,923 19 36,311 2,467 306,933 6,676 7.9% 6.3% 4,190 Credit Rating Change Disney 0.96 Six Flags 0.89 248,699 9.6% 9.6% 2.4% 2.4% 21.8% 24.2% 3.0% 4.2% . B+ 21,923 19 36,311 2,467 306,933 6,676 7.9% 6.3% 4,190 Additional Debt for Fox Acquisition Disney 0.96 9.6% 0.89 9.6% 248,699 2.4% 2.4% 21.8% 24.2% 3.0% 4.2% . B+ 21,923 19 36,311 2,467 Six Flags 306,933 6,676 7.9% 6.3% 4,190 Bear Stock Market Disney 0.96 Six Flags 0.89 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% Tax Rate Increases Disney 0.96 Six Flags 0.89 9.6% 7.9% 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 9.6% 6.3%