The Type of Debt Disney Offered to the Public for Sale (Essay Sample)
Go to the Thomson One site and find the prospectus filed on December 19, 2008, by Walt Disney Company (ticker symbol, DIS). This prospectus can be accessed under the filings table and look for PROSP under filling type. Read the prospectus in preparation for completing this assignment. (http://www(dot)sec(dot)gov/Archives/edgar/data/1001039/000104746908013271/0001047469-08-013271-index.htm).
You are to write a three to six (3-6) page report that answers the following:
1. Indicate the type of debt did Disney offers to the public for sale and discuss the various approaches Disney incorporated to ensure successful marketability of these securities.
2. List the dollar amount of debt Disney proposed to sell to the public. Indicate whether this amount has increased or decreased from 2008 to 2010. Discuss some potential causes of this increase or decrease.
3. Determine the percentage of the sales price Disney nets after discounts and commissions. Indicate whether this amount as decreased or increased from 2008 to 2010. Discuss some potential causes of this increase or decrease.
4. Indicate what Disney stated they would use the proceeds for from the sale of securities. Discuss whether or not Disney was able to use those funds for the reasons stated in the prospectus. If not should Disney be held accountable by their investors? Why or Why not?
5. Include an introduction with a thesis statement, conclusion, and sub-headings.
Walt Disney Prospectus
The Walt Disney Company based in the United States is an international mass media and entertainment multinational. The company has increased its diversification in a variety of products apart from media in order to ensure continued business development. In 2008, Disney initiated a prospectus plan to its shareholders and prospective investors. The purpose of the plan was to boost investor confidence by offering long-term stock ownership among the existing stockholders and potential stockholders. Furthermore, Walt Disney prospectus was introduced to aid in raising funds required for its expansion strategies. The capital expenditure for the expansion strategies would cost billions of dollars to undertake thus necessitated the company to issue a prospectus that would attract investors. Disney successes are attributed to its strategy to expansively invest in capturing the imagination of millions of its customers by establishing an incredible set of world's premier quality content that can attain unmatched experiences. The company made several achievements in 2012 including 16 percent increase of turnover to $5.6 billion dollars and 24 percent increase of earnings per share to $3.12. Walt Disney has established itself as a premium brand in the entertainment marketplace through diversifying its entertainment business to cater multiple segments of the market including luxurious cruises, theme parks, movies, and entertainment for children. The enormous market capitalization of over $123 billion offers Disney a stronger competitive advantage in the entertainment industry. Moreover, Disney attributes its strengths from three core competencies including superior technological innovation, excellent continuous developments, and presence of strong organizational culture. Disney growth strategies to international markets provide a myriad of opportunities for the company to promote its product and services to other markets globally. Disney serves over 40 percent of the entertainment industry in the United States. In addition, the technological progress, such as motion movies and games on contemporary digital phones offer enormous incentives for Disney (Narula, 2013).
The type of debt Disney offered to the public for sale
Disney is recognized for offering senior debt securities or subordinated debt securities to the public. Disney debt securities may be junior subordinated or senior subordinated. The debt securities offered to the public might be issued independently or collectively or in exchange for other securities. Disney issued senior debt securities under a debt securities plan over a period and a subordinated debt security indenture covered the issuance of the subordinated debt securities. Disney integrated multiple approaches to ensure successful sale of its securities. Disney discourage...
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