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| Company (Division) | Levered Beta 2 | Income B4 Tax 3 | Income Tax Exp. 4 | Tax Rate 5 | Debt (mrq) 6 | Equity (mrq) 7 | D/E Ratio (mrq) | Asset Beta | |
| Disney (Walt) Co. (The) 1 | 1.63 | 12,246 | 4,242 | 34.6% | 13,713 | 48,178 | 0.28 | 1.37 | |
| Media Networks | |||||||||
| Parks & Resorts | 0.15 | = Avg Asset Beta from Pure Play Companies * (1 + (1-Tax Rate)*(Debt/Equity) | |||||||
| Studio Entertainment | |||||||||
| Consumer Products | |||||||||
| Interactive Media | |||||||||
| 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 | |
| Average | 0.13 | ||||||||
| Parks & Resorts Div. Cost of Capital = Rf + (B)(MRP) | |||||||||
| Risk Free Rate 8 | 2.2% | ||||||||
| Beta for Division | 0.15 | ||||||||
| MRP 9 | 5.0% | ||||||||
| 2.9% | |||||||||
| Resources: | |||||||||
| 1 http://www.mergentonline.com.ezproxy.snhu.edu/companydetail.php?pagetype=businesssegments&compnumber=2488 | |||||||||
| 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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