Question: You are given the following data about Walt Disney and News Corporation, two of the major corporations in the media and entertainment industry. The data

You are given the following data about Walt Disney and News Corporation, two of the major corporations in the media and entertainment industry. The data are for the end of the financial year 1999, and are in US$ millions. Though News Corporation is based in Australia, it also trades on the NYSE, and its data in the following table, like those for Walt Disney, ate according to the U.S. GAAP.

a. Compute the ROE for Walt Disney and News Corporation.
b. Use the DuPont model to analyze the difference in ROE between the two companies, identifying the elements that primarily cause this difference.

Walt Disney 23,402 8,035 2,314 1,300 43,679 20,975 News Corporation Sales EBIT EBT NI Assets Equity 14,395 1,819 1,212 719 35,681 16,374

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a ROE NIEquity So ROE for Walt Disney 130020975 0062 ROE for News Corporation 71916374 0044 Clearly ... View full answer

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