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