Question: Use the Terminal Tutorial to calculate Disneys weighted average cost of capital (WACC) for Q1 2019. Bloomberg includes more elements in the WACC calculation than

Use the Terminal Tutorial to calculate Disneys weighted average cost of capital (WACC) for Q1 2019. Bloomberg includes more elements in the WACC calculation than the textbook does. For our purposes, use the textbook formula with the data points from Bloomberg. Solve for WACC.

DisneyQ1

Beta

Exp.Rate

Risk FreeRate

TaxRate

Pre-TaxDebtCost

Equity

Short-TermDebt

Long-TermDebt

Total Debt

WACC

0.90

10.76%

2.72%

21.06%

3.26%

16,950

3,489

17,176

181,615

Use the Bloomberg Terminal to gather the necessary data to make a similar calculationfor Q2 2019. Solve for WACC.

DisneyQ2

Beta

Exp.Rate

Risk FreeRate

TaxRate

Pre-TaxDebtCost

Equity

Short-TermDebt

Long-TermDebt

Total Debt

WACC

0.88

9.64%

2.41%

21.83%

2.89%

19,744.4

19,158

37,803

254,705.4

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