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:

a. Use the DuPont formula to determine the rate of return on investment for the four Disney sectors. Round whole percents to one decimal place and investment turnover to two decimal places.
b. How do the four sectors differ in their profit margin, investment turnover, and return oninvestment?

Transcribed Image Text:

Income from ations Media Networks Parks and Resorts Studio Entertainment Consumer Products $6,146 1,553 618 816 Revenue $18,714 11,797 6,351 Assets $27,244 19,530 12,221 4,992