The 2007 financial statements for The Walt Disney Company can be found on the Internet. Locate those financial statements and consider the following questions.

1. What is the par value of Disney’s common stock? What was the average issuance price of Disney’s common stock?

2. Does Disney use the cost method or the par value method of accounting for treasury stock? As of September 29, 2007, what was the average cost of the repurchased shares held in treasury?

3. Combining information from questions (1) and (2), estimate the decrease in Disney’s retained earnings if all of the treasury shares were retired.

4. From Disney’s foreign currency translation adjustment, deduce whether the foreign currencies got stronger or weaker in 2007 (relative to the U.S. dollar) in the countries where Disney has subsidiaries. (Hint: Find the detail about accumulated other comprehensive income that is included at the bottom of the statement of stockholders’ equity.)

5. In the notes to Disney’s financial statements, the accounting for stock options is summarized. Does Disney use the fair value or the intrinsic value method?