Net debt:
Net debt is the different between the total debt and the cash plus risk-free securities. It is obtained from the subtraction of any cash balance from the total debt.
Equity and Debt Weights for DIS
The weights are the percentage of the firm’s value financed by equity (E%),
Weighted Average Cost of Capital (WACC):
The Weighted Average Cost of Capital is the rate that a firm is expected to pay on average to all of its shareholders to finance its assets. WACC is the firm’s cost of capital and is dictated by the external market of the firm.
It represents the minimum return that a firm ought to earn on an existing asset base in order to satisfy its creditors, owners, and other providers of capital, or else they would invested somewhere else.
To determine:
The net debt, market value of equity and debt, and WACC of DIS.
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