Earnings per share of the Walt Disney Company 2004-2015 By Ms. Russell

Why Disney? I LOVE Disney World…. A lot So much, that I think I should buy stock in Disney World, since I spend a lot of money there anyways I want to see how much return I can expect on my investment, if I were to buy Disney stock

Earnings per share of the Walt Disney Company 2004-2015 Year Actual Return 2004 $ 1.07 2005 $ 1.22 2006 $ 1.65 2007 $ 2.33 2008 $ 2.34 2009 $ 1.78 2010 $ 2.07 2011 $ 2.56 2012 $ 3.17 2013 $ 3.42 2014 $ 4.31 2015 $ 4.95

Earnings per share of the Walt Disney Company 2004-2015 Year Actual Return Predicted Return Residual 2004 $ 1.07 $ 0.88 $ 0.19 2005 $ 1.22 $ 1.19 $ 0.03 2006 $ 1.65 $ 1.50 $ 0.15 2007 $ 2.33 $ 1.80 $ 0.53 2008 $ 2.34 $ 2.11 $ 0.23 2009 $ 1.78 $ 2.42 $ (0.64) 2010 $ 2.07 $ 2.73 $ (0.66) 2011 $ 2.56 $ 3.04 $ (0.48) 2012 $ 3.17 $ 3.34 $ (0.17) 2013 $ 3.42 $ 3.65 $ (0.23) 2014 $ 4.31 $ 3.96 $ 0.35 2015 $ 4.95 $ 4.27 $ 0.68

The Regression y = 0.3078x - 615.95 The regression line tells us that for every additional year that I hold the stock (I don’t sell it), that I can expect a $0.31 return on my money, per share of stock I own R² = 0.8641 The R2 tell me that 86.41% of the variability in my stock return, can be explained by the model 13.58% is explained by other variables, such as a recession, and new major Disney attraction opening or a disaster at a Theme Park

Conclusion In conclusion, while there is a strong, positive correlation between the year and earnings per share, I may want to reconsider purchasing Disney Stock. Since I can only expect an additional $0.31 per share (pulled from the regression line equation), I may want to purchase stock in a company with a higher return.

Conclusion Upon further research, I discovered that I would receive much more earnings per share with the following stocks, instead of Disney: Auto Zone - $40.70 Google - $25.81 American Airlines - $10.59

Conclusion I’ll still be visiting Disney World every year…. ….but won’t be a share holder