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| Input Data (Millions Except Per Share Data) | | | | Source |
| Tax rate | | | 34% | Morningstar key ratios for 2016 |
| Debt (D) | | | $20,490,000,000.00 | Yahoo Finance |
| Number of common shares (n) | | | 1,580,000,000 | Google Finance |
| Stock price per share (P) | | | $113.11 | Google Finance as of 20 March 2017 |
| Capital Structure (Millions Except Per Share Data) |
| Market value of equity (S = P ´ n) | | | $178,713,800,000.00 |
| Total value (V = D + S) | | | $199,203,800,000.00 |
| Percent financed with debt (wd = D/V) | | | 10.3% |
| Percent financed with stock (ws = S/V) | | | 89.7% |
| Cost of Capital |
| Cost of debt (rd) | | | 2.35% | | | annual report interest expense/total debt | | | | | page 90 ar |
| Beta (b) | | | 1.25 | Average from 5 years data from Yahoo Finance, google finance and spreadsheet |
| Risk-free rate (rRF) | | | 13.12% | 30 Year Treasury Yield, WSJ, 3/20/17 |
| Market risk premium (RPM) | | | 10.02% | the expected rate of return was obtained from stock analysis.net | | how? |
| Cost of equity from CAPM (rs = rRF + b ´ RPM ) | | | 25.65% |
| Cost of Equity from Dividend Growth Model |
| Future Dividend Growth Rate | | | 9.40% | stock analysis.net |
| 2016 Dividend $ | | | 1.4200 |
| Share Price $ (20/3/17) | | | $ 113.11 |
| Cost of Equity from Dividend Growth Model | | | 10.77% |
| Cost of Equity from Bond Plus Markup |
| Cost of debt | | | 2.35% | | | is it right? |
| Risk Markup | | | 6.24% | | | arithmetic average of t-bonds of 6.24% dated 1928-2016 |
| Cost of Equity from Bond Plus Markup | | | 8.59% |
| Average rs | | | 15.0% |
| WACC | | | 13.62% |
janejanie
disney_wacc_excel_sheet.xls
