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Comprehensive Financial Analysis for Decision Making Process

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Analyze the corporate financial decision-making process at your selected organization (Walt Disney). In your analysis be sure to address the following items:

1) Evaluate long-term financing instruments and strategies for your selected organization (Walt Disney).

2) Devise the optimal capital structure for your selected organization (Walt Disney) in light of current, business, economic, and industry trends.

3) Estimate the firm's cost of capital, price per share, and market value based on its optimal capital structure that you have devised.

Please include references:

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Solution Summary

The solution creates a corporate comprehensive financial analysis for decision making processes at a Walt Disney. The solution evaluates long-term financing instruments and strategies for Walt Disney.

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Walt Disney has $11,110 millions long term borrowings to finance there asset and a total of $30.17 million of total debt as per its financing decision.
Its long term borrowings include:
Commercial Paper
The company had $2.0 billions of commercial borrowings in its long term debt and a total of $4.5 billion of commercial paper can be facilitated by the bank for the company with half of it is going to expire in 2010 and the other half in the year 2011.These commercial paper borrowings will cost the company at LIBOR based rates plus spread depending on the company credit rating. Apart from this the company has a capacity to issue up to $800 million of letters of credit that is going to expire by the year 2011.
U.S. Medium-Term Note Program
The company has a total of $7.0 billion debt outstanding under US ...

Solution provided by:
Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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