| Company Name | Walt Disney Company |
| debt | $ 20,490,000,000 |
| debt/equity | 43.34 |
| beta | 1.45 |
| market cap(equity) | $ 174,030,000,000 |
| interest expense | 0 |
| interest | 0.00% | the companies interest expense is zero |
| income before tax | $ 14,868,000 |
| tax charged | $ 5,078,000 |
| tax | 34.15% |
| % of debt | 30.24% |
| % of equity | 69.76% |
| tresury bond rate ten year | 2.42% |
| cost of capital | 18.37% |
| WACC | 12.82% |
| NOTE: ALL information is collected from Yahoo Finace |
| b) WACC is very inportant for the company as it shows the cost of capital or the expected return which the investors are expecting and are buying the share of the company for that return. While investing its very important for the company to take WACC into account as its the threhold of weather a company should invest in a project or not. If the average return is less then the WACC then the company should forgo the investment as it would generate less then what the investors expect. if the return is greater the company should invest in the project. evaluating company performance is the same as investing in a new project. if the company has a return higher or equal to WACC then its ok but if its lower then the investors wouldnt be happy as they are getting less then what they expected. manager in this case should aim to increase the return so that at minimum it reaches WACC. |
milkywayTime
week_3_course_project.xlsx
