Hong Kong Disneyland

1.How would you value the Hong Kong Disneyland project from the perspective of Walt Disney? The valuation of Hong Kong Disneyland from the perspective of Walt Disney is do by taking the following assumptions: be of Capital = 9.52% Cost of Government Debt = 8.19% Cost of Commercial Bank Debt = 11.36% Cost of legality = 12.3% (10 year average) Inflation = 7.31% (10 year average) Gross margin = 37% operating(a) Cost = 22% Variable Management allowance = 5% With the above assumptions the FCF of the project and the Royalties that Walt Disney would brace were calculated by projecting the Cash Flows till 25 years. The NPV of the project was institute to be HKD1774million and the revenues to Walt Disney are HKD3834.51million. 2.How much does the attractiveness of the project castrate according to different economic scenarios and financing arrangements? Inflation operate Costs 0.060.100.150.180.22 2.804261.052495.64288.88-1035.18-2800.59 5.007269.955127.442449.30842.41-1300.10 7.3111373.078716.445395.653403.18746.55 10.0017788.9414328.5810003.127407.853947.48 On performing the Scenario abridgment by taking respective(a) run costs ranging from 6% (Oriental Land level) to 22% (Euro Disney level) and on Inflation from 2.

8% (Minimum swelling in the past decade) and 10% (Highest inflation in the past decade was 9.6%) it was found that the FCF varies from 17.788billion to -2.8 billion. Annual AttendeesOperating CostNPV (in Million HK$) 2.00%0.103829.31 5.00%0.107367.55 5.91%0.108716.44 8.00%0.1012436.77 On doing a scenario analysis anticipate different Annual attendees growth rate at 10% operating costs we find that the FCF varies from 3.829billion to 12.436billion. Hongkong Government: Commercial banksOperating CostWACCNPV 0.8:0.210%9.40%11900.39 0.726:0.27410%9.05%13095.64 0.9:0.110%9.24%12436.77 Doing a scenario analysis on the financing structure we find that the NPV of FCF... If you want to get a full essay, order it on our website: Orderessay

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