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ks, Consumer Products, with betas of , , and , respectively. Tbills are yielding 7% and the market return is at 15%. What discount rate SHOULD the pany use when evaluating these projects? Problem 5 Based on the success of EuroDisney, Disney wishes to build two additional theme parks (SlavicDisney in Moscow, Russia and AfricaDisney in Lagos, Nigeria). Disney has a cost of capital of 14%. The pany is in three industries。 EVA is copyrighted by SternStewart Consulting Firm and used with permission. Economic Profit $10 million1,00 )(Inves ted Capital)(?????? rROIEP169。 Movies,Theme Parks, Consumer Products, with betas of , , and , respectively. Tbills are yielding 7% and the market return is at 15%. What discount rate SHOULD the pany use when evaluating these projects? r = .07 + ( .15 .07 ) = % Problem 6 Based on the success of EuroDisney, Disney wishes to build two additional theme parks (SlavicDisney in Moscow, Russia and AfricaDisney in Lagos, Nigeria). Disney has a cost of capital of 14%. The pany is in three industries。 EVA is copyrighted by SternStewart Consulting Firm and used with permission. Residual Ine EVA Quayle City Subduction Plant ($mil) Given COC = 12% milli onEV A10$)000,112(.130 Inco me Resid ual?????? Economic Profit Economic Profit = capital invested multiplied by the spread between return on investment and the cost of capital. Inves ted Capital)( ProfitEconomic????rROIEP169。 Movies,Theme Parks, Consumer Products, with betas of , , and , respectively. Tbills are yielding 7% and the market return is at 15%. What discount rate should Disney use if it wishes to modernize its consumer products production facility why? Problem 6 Based on the success of EuroDisney, Disney wishes to build two additional theme parks (SlavicDisney in Moscow, Russia and AfricaDisney in Lagos, Nigeria). Disney has a cost of capital of 14%. The pany is in three industries。Weighted Average Cost of Capital without taxes WACC = rdebt (D) + requity (E)