|Levered Beta 2||Income B4 Tax 3||Income Tax Exp. 4||Tax|
|Disney (Walt) Co. (The) 1||1.63||12,246||4,242||34.6%||13,713||48,178||0.28||1.37|
|Parks & Resorts||0.15||= Avg Asset Beta from Pure Play Companies * (1 + (1-Tax Rate)*(Debt/Equity)|
|Six Flags (SIX)||1.32||160||47||29.1%||1,396||224||6.23||0.24|
|SeaWorld Entertainment, Inc. (SEAS)||0.24||79||29||36.6%||1,612||580||2.78||0.09|
|Cedar Fair (FUN)||0.82||114||10||8.7%||1,559||96||16.20||0.05|
|Parks & Resorts Div. Cost of Capital = Rf + (B)(MRP)|
|Risk Free Rate 8||2.2%|
|Beta for Division||0.15|
|2 Estimated consensus from evaluation of six different sources|
|3 Income Before Tax for most recent year end per Annual Report|
|4 Income Tax Expense for most recent year end per Annual Report|
|5 Calculation of “Income Tax Expense” / “Income Before Tax”|
|6 Debt = Current portion of Long Term Debt + Long Term Debt for most recent year end per Annual Report|
|7 Equity = Total Stockholder Equity for most recent year end per Annaul Report|
|8 10 Year Treasury Note as of 9/1/15 retrieved from http://www.marketwatch.com/investing/bond/tmubmusd10y?CountryCode=bx|
|9 Per Class Lectures|
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