Question
The Walt Disney Company has four profitable business segments, described as follows: Media Networks: The ABC television and radio network, Disney channel, ESPN, A&E, E!,
The Walt Disney Company has four profitable business segments, described as follows: Media Networks: The ABC television and radio network, Disney channel, ESPN, A&E, E!, and Disney.com Parks and Resorts: Walt Disney World Resort, Disneyland, Disney Cruise Line, and other resort properties Studio Entertainment: Walt Disney Pictures, Touchstone Pictures, Hollywood Pictures, Miramax Films, and Buena Vista Theatrical Productions Consumer Products: Character merchandising, Disney stores, books, and magazines Disney recently reported sector income from operations, revenue, and invested assets (in millions) as follows:
Income from Operations Revenue Invested Assets Media Networks
6818 20356 28627
Parks and Resorts 2220 14087 22056
Studio Entertainment 661 5979 14750
Consumer Products 1112 3811 7506
a. Use the DuPont formula to determine the rate of return on investment for the four Disney sectors. In your computations, carry out amounts to two decimal places. If required, round your final answers to one decimal place.
ROI | |
Media Networks: | % |
Parks and Resorts: | % |
Studio Entertainment: | % |
Consumer Products: | % |
b. How do the four sectors differ in their profit margin, investment turnover, and return on investment?
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