Question 1 Yield for 10-year Treasury bonds:

Question 2 Disney's Market Capitalization:

Disney's Enterprise Value:
Disney's Cash:
Disney's equity beta:
Question 3 Disney's cost of debt:

3.407%
70,080 million
79,950 million
2,720
1.18
4.118% maturity is Dec. 15, 2017

5.

Total market value of Disney's debt:

8,799 million

6.

Weight of debt:
Weight of equity:

7.

Disney's cost of equity:

9.307%

8.

Disney's effective cost of debt:

2.677%

9.

Disney's WACC:

8.567%

10.

Net debt:
Weight of debt:
Weight of equity:

6,079
7.982%
92.018%

Disney's WACC:

8.778%

11.155%
88.845%

Ratings
Include inBond SymbolIssuer Name
CouponMaturity CallableMoody's S&P
Watchlist
DIS.GX
WALT DISNEY COMPANY 6.8 6/28/2010 No
A2
A
DIS.IC
WALT DISNEY COMPANY 0.35 7/16/2010 No
A2
A
DIS.HX
WALT DISNEY COMPANY 5.7 7/15/2011 Yes
A2
A
DIS.HM
WALT DISNEY COMPANY 6.38 3/1/2012 No
A2
A
DIS.IE
WALT DISNEY COMPANY 4.7 12/1/2012 Yes
A2
A
DIS.IG
WALT DISNEY COMPANY 4.5
### Yes
A2
A
DIS.IA
WALT DISNEY COMPANY 6.2 6/20/2014 No
A2
A
DIS.HY
WALT DISNEY COMPANY 5.63 9/15/2016 Yes
A2
A
DIS.IB
WALT DISNEY COMPANY
6 7/17/2017 Yes
A2
A
DIS.HV
WALT DISNEY COMPANY 5.88
### No
A2
A
DIS.II
WALT DISNEY COMPANY 5.5 3/15/2019 Yes
A2
A
DIS.GB
ABC INCORPORATED
8.75 8/15/2021 No
NR
A
DIS.HL
WALT DISNEY COMPANY
7 3/1/2032 No
A2
A
DIS.GV
WALT DISNEY COMPANY 0.04 4/1/2039 Yes
A2
A
DIS.GP
WALT DISNEY COMPANY8/15/2057 Yes
A2
A
DIS.GC
WALT DISNEY COMPANY 7.55 7/15/2093 Yes
A1
A

Last Sale
Fitch Price
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A

103.57
100.07
107.65
110.91
109.05
108.76
117.01
111.36
115.76
111.92
109.71
131.72
122.11
97.56
97.75
117.48

total market value of Disne

Last Sale

4.
5.
Yield amount outstandingmarket value of issue
0.51
0.91
1.41
1.59
2.22
2.24
3.71
3.61
4.12
4.22
5.11
5.3
5.82

50,000,000
750,000,000
1,250,000,000
750,000,000
750,000,000
1,000,000,000
450,000,000
750,000,000
350,000,000
300,000,000
500,000,000
190,095,000
500,000,000
25,000,000
25,000,000
300,000,000

total market value of Disney debt:

51,784,500
750,525,000
1,345,650,000
831,825,000
817,875,000
1,087,590,000
526,563,000
835,207,500
405,170,500
335,745,000
548,540,000
250,396,936
610,525,000
24,390,250
24,437,500
352,440,000
8,798,665,186

Chapter 12 Appendix Data Case

6
7

0.95 Estimated Beta Coefficient

for 60 month period May 2003 - April 2008
0 Estimated Alpha
for 60 month period May 2003 - April 2008

Date
DIS Price SP500 PriceDIS Return SP500 ReturnAnn_EuroDollarMonthlyEurDDIS ExRet SP ExRet
31.25 1,385.59
Apr-08
0.03
0.05
2.97
0
0.03
0.05
30.23 1,322.70
Mar-08
-0.03
-0.01
2.87
0
-0.03
-0.01
31.23 1,330.63
Feb-08
0.09
-0.03
3.17
0
0.08
-0.04
28.75 1,378.55
Jan-08
-0.08
-0.06
3.93
0
-0.08
-0.06
31.1 1,468.36
Dec-07
-0.02
-0.01
5.23
0
-0.02
-0.01
31.6 1,481.14
Nov-07
-0.04
-0.04
4.83
0
-0.05
-0.05
33.01 1,549.38
Oct-07
0.01
0.01
5.01
0
0
0.01
32.78 1,526.75
Sep-07
0.02
0.04
5.5
0
0.02
0.03
32.03 1,473.99
Aug-07
0.02
0.01
5.53
0
0.01
0.01
31.45
1,455.27
Jul-07
-0.03
-0.03
5.32
0
-0.04
-0.04
32.54 1,503.35
Jun-07
-0.04
-0.02
5.32
0
-0.04
-0.02
33.78
1,530.62
May-07
0.01
0.03
5.32
0
0.01
0.03
33.34 1,482.37
Apr-07
0.02
0.04
5.31
0
0.01
0.04
32.82 1,420.86
Mar-07
0.01
0.01
5.32
0
0
0.01
32.65 1,406.82
Feb-07
-0.03
-0.02
5.32
0
-0.03
-0.03
33.52 1,438.24
Jan-07
0.03
0.01
5.32
0
0.02
0.01
32.66 1,418.30
Dec-06
0.05
0.01
5.35
0
0.04
0.01
31.22 1,400.63
Nov-06
0.05
0.02
5.32
0
0.05
0.01
29.72 1,377.94
Oct-06
0.02
0.03
5.32
0
0.01
0.03
29.2 1,335.85
Sep-06
0.04
0.02
5.32
0
0.04
0.02
28.01
1,303.82
Aug-06
0
0.02
5.33
0
-0.01
0.02
28.05 1,276.66
Jul-06
-0.01
0.01
5.37
0
-0.01
0
28.34
1,270.20
Jun-06
-0.02
0
5.24
0
-0.02
0
28.81 1,270.09
May-06
0.09
-0.03
5.07
0
0.09
-0.04
26.41 1,310.61
Apr-06
0
0.01
4.91
0
0
0.01
26.35 1,294.87
Mar-06
0
0.01
4.75
0
-0.01
0.01
26.44 1,280.66
Feb-06
0.11
0
4.58
0
0.1
0
23.91 1,280.08
Jan-06
0.06
0.03
4.48
0
0.05
0.02
22.64 1,248.29
Dec-05
-0.03
0
4.34
0
-0.03
0
23.3 1,249.48
Nov-05
0.02
0.04
4.14
0
0.02
0.03
22.78 1,207.01
Oct-05
0.01
-0.02
3.95
0
0.01
-0.02
22.55 1,228.81
Sep-05
-0.04
0.01
3.72
0
-0.05
0
23.54 1,220.33
Aug-05
-0.02
-0.01
3.54
0
-0.02
-0.01
23.97
1,234.18
Jul-05
0.02
0.04
3.36
0
0.02
0.03
23.54 1,191.33
Jun-05
-0.08
0
3.19
0
-0.08
0
25.65 1,191.50
May-05
0.04
0.03
3.03
0
0.04
0.03
24.68 1,156.85
Apr-05
-0.08
-0.02
2.92
0
-0.08
-0.02
26.85 1,180.59
Mar-05
0.03
-0.02
2.75
0
0.03
-0.02
26.11 1,203.60
Feb-05
-0.02
0.02
2.55
0
-0.03
0.02
26.76 1,181.27
Jan-05
0.03
-0.03
2.42
0
0.03
-0.03
25.98 1,211.92
Dec-04
0.04
0.03
2.32
0
0.04
0.03
24.9 1,173.82
Nov-04
0.07
0.04
2.06
0
0.06
0.04
23.36 1,130.20
Oct-04
0.12
0.01
1.84
0
0.12
0.01
20.89 1,114.58
Sep-04
0
0.01
1.72
0
0
0.01
20.8
1,104.24
Aug-04
-0.03
0
1.52
0
-0.03
0
21.39 1,101.72
Jul-04
-0.09
-0.03
1.35
0
-0.1
-0.04

Jun-04
May-04
Apr-04
Mar-04
Feb-04
Jan-04
Dec-03
Nov-03
Oct-03
Sep-03
Aug-03
Jul-03
Jun-03
May-03
Apr-03

23.61
21.74
21.33
23.15
24.58
22.23
21.61
21.19
20.78
18.51
18.81
20.12
18.12
18.03
17.12

1,140.84
1,120.68
1,107.30
1,126.21
1,144.94
1,131.13
1,111.92
1,058.20
1,050.71
995.97
1,008.01
990.31
974.5
963.59
916.92

0.09
0.02
-0.08
-0.06
0.11
0.03
0.02
0.02
0.12
-0.02
-0.07
0.11
0
0.05

0.02
0.01
-0.02
-0.02
0.01
0.02
0.05
0.01
0.05
-0.01
0.02
0.02
0.01
0.05

1.18
1.03
1.02
1.02
1.02
1.03
1.08
1.04
1.05
1.06
1.05
1.04
1.08
1.25

0
0
0
0
0
0
0
0
0
0
0
0
0
0

0.09
0.02
-0.08
-0.06
0.1
0.03
0.02
0.02
0.12
-0.02
-0.07
0.11
0
0.05

0.02
0.01
-0.02
-0.02
0.01
0.02
0.05
0.01
0.05
-0.01
0.02
0.02
0.01
0.05