Using the table below, please answer below question

Note: Long term & short rate are the same!

FED RATE INCREASE

An increase of the Federal Reserve interest rate by 200 basis points (2.0%) lifts the borrowing costs of every debt issuer. What is Disney's adjusted WACC?

U.S. EQUITY MARKET DOWNTURN

Equity market expectations may cool resulting in an expectation that equity markets may only expand by 200 basis points (2.0%) over the coming year. What is Disney's adjusted WACC?

WACC Total Capital 3023 306,933 6,676 7.9% 6.3% 2.3 2.8 3.0 @ 248.500 21,923 32 306,833.9 306,933 6,676 7.9% 6.3% Weighted Average Cost of Capital Scenario Changes Cost of Capital Components Capital Structure Components Expected Return of Risk Free Pre-Tax Bond Short-Term Long-Term Beta Market Rate Tax Rate Debt Cost Rating Equity Target Disney 0.96 9.6% 249 2.4% 21.8% 3.0% A 248,699 21,923 36,311 Six Flags 0.89 9.6% 2.4% 24.2% 4.2% B+ 4,190 19 2,467 Fed Rate Move Disney 0.96 9.6% 2.4% 21.8% 3.0% A 248,699 21,923 36,311 Six Flags 0.89 9.6% 2.4% 24.2% 4.2% B+ 4,190 19 2,467 Credit Rating Change Disney 0.96 9.6% 2.4% 21.8% 3.0% 248,699 21,923 36,311 Six Flags 0.89 9.6% 2.4% 24.2% 4.2% B+ 4,190 19 2,467 Additional Debt for Fox Acquisition Disney 0.96 9.6% 24% 2.4% 21.8% 3.0% A 248,699 21,923 36,311 Six Flags 0.89 9.6% 2.4% 24.2% 4.2% B+ 4,190 19 2,467 Bear Stock Market Disney 0.96 9.6% 2.4% 21.8% 3.0% A 248,699 21,923 36,311 Six Flags 0 .89 9.6% 2.4% 24.2% 4.2% B+ 4,190 19 2,467 Tax Rate Increases Disney 0.96 9.6% 2.4% 21.8% 3.0% A 248,699 21,923 36,311 Six Flags 0 .89 9.6% 2.4% 24.2% 4.2% B+ 4,190 19 2,467 306,933 6,676 7.9% 6.3% 7.9% 306,933 6,676 6.3% 306,933 6,676 7.9% 6.3% 306,933 6,676 7.9% 6.3%