Disney is currently trading at $$92\mathrm{.}39$ per share. It has $1\mathrm{.}81$ billion shares outstanding. Disney has $$61\mathrm{.}42$ billion worth bonds outstanding in market values. The last class of bonds that Disney issued had a coupon rate of $6\%($coupon payments are paid semi$-$annual$),$ and have a $1,000$ face value. The bonds currently have $27$ years left to maturity and are currently trading at $1045\mathrm{.}70.$ Disney does not have any preferred stock outstanding. The expected market risk premium is $5\%,$ and the current Treasury bill rate is $4\mathrm{.}15\%.$ Disney has a tax rate of $21\%.$

A$.$ Calculate Disney$$s Beta. Use the sticker symbol $$VTI$$ as your market return. $($use $=$stockhistory to pull monthly data from $10/01/2016$ to $10/01/2024).$

B$.$ Use the Beta you calculated to calculate the cost of equity using CAPM.

C$.$ Given the above information, what is Disney$$s WACC? $10$ pts$.$

D$.$ Disney$$s last year dividend was $$1\mathrm{.}76.$ The dividend has been growing by $5\%$ each year and expected to continue to do so forever. What is Disney$$s WACC if you use the average of CAPM and the DCF $($dividends$)$ for Disney$$s cost of equity. $5$pts

E$.$ Disney has the following coefficients on the Fama$-$French $3$ factor model: b:$($use the beta you found in part A$),$ s:$-1\mathrm{.}2,$ h: $1\mathrm{.}08$

The market risk premium is $5\%,$ the size $($SMB$)$ risk premium is $3\mathrm{.}25\%,$ and the value premium $($HML$)$ is $3\mathrm{.}80\%.$ What is estimated cost of equity using the $3-$factor model? What will Disney$$s WACC be if only this estimated cost of equity is used? $5$pts

$($chart$)$

F$.$ Disney is thinking about opening up its own line of fast$-$food restaurants. To estimate the cost of equity, Disney is using the following Firm$$s information to get an estimated cost of equity: $\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline Company Name & Beta & Debt to equity Ratio $\backslash \backslash$

$\backslash$hline McDonald's & $\mathrm{.}73$ & $\mathrm{.}26\backslash \backslash$

$\backslash$hline Jack in the Box & $1\mathrm{.}95$ & $\mathrm{.}58\backslash \backslash$

$\backslash$hline Yum Brand's & $1\mathrm{.}08$ & $\mathrm{.}45\backslash \backslash$

$\backslash$hline Wendy's & $0\mathrm{.}80$ & $\mathrm{.}30\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$