Determining the investment turnover


Response to the following problem:

The Walt Disney Company has four profitable business segments, described as follows:

Media Networks:The ABC television and radio network, Disney channel, ESPN, A&E, E!, and Disney.com

Parks and Resorts:Walt Disney World Resort, Disneyland, Disney Cruise Line, and other resort properties

Studio Entertainment:Walt Disney Pictures, Touchstone Pictures, Hollywood Pictures, Miramax Films, and Buena Vista Theatrical Productions

Consumer Products:Character merchandising, Disney stores, books, and magazines

Disney recently reported sector income from operations, revenue, and invested assets (in millions) as follows:


Income from
Operations

Revenue
Invested
Assets
Media Networks $6,818
$20,356
$28,627
Parks and Resorts 2,220
14,087
22,056
Studio Entertainment 661
5,979
14,750
Consumer Products 1,112
3,811
7,506

Use the DuPont formula to determine the rate of return on investment for the four Disney sectors. Round Profit Margin, ROI to one decimal place and Investment Turnover to two decimal places.

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Financial Accounting: Determining the investment turnover
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