Loose-Leaf Essentials of Investments
Loose-Leaf Essentials of Investments
10th Edition
ISBN: 9781259604966
Author: Kane, Alex, Marcus Professor, Alan J., Bodie Professor, Zvi
Publisher: McGraw-Hill Education
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Chapter 2, Problem 1WM

Go to the website for The Walt Disney Co (DIS) and download its most recent annual report (its 10-K). Locate the company’s consolidated Balance Sheets and answer these questions:
a. How much preferred stock is Disney authorized to issue? How much has been issued?
b. How much common stock is Disney authorized to issue? How many shares are currently outstanding?
c. Search for the term “Financing Activities.” What is the total amount of borrowing listed for Disney? How much of this is medium-term notes?
d What other types of debt does Disney have outstanding?

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A company currently pays a dividend of $3.6 per share (D0 = $3.6). It is estimated that the company's dividend will grow at a rate of 19% per year for the next 2 years, and then at a constant rate of 6% thereafter. The company's stock has a beta of 1.4, the risk-free rate is 8.5%, and the market risk premium is 4.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

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Loose-Leaf Essentials of Investments

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