Analyzing a firm's current financing choices Assignment

Analyzing a firms current financing choices - Assignment ExampleWalt Disney is single of the largest entertainment companies in the world. It was founded by two brothers Walt and Ray in 1923 with an initial objective of being a cartoon animation network. Since then the play along has grown to become iodine of the largest studios of Hollywood. In addition, this company is one of the Dow Jones industrial average components. Finally, the company has expanded over the years and currently it has a number of subsidiaries e.g. Euro Disney and Hong Kong Disney. (disney.com,2008)From the remnant sheet, we find the company has a common stock of 3.6 billion authorized shares with a comparison jimmy of $0.1. From the authorized 2.6 billion shares were issued on 29th march, 2008 and 29th September, 2007. This makes the value of the companys equity to be $26.546billion. In addition, the company has a favorite(a) stock of 100 million authorized shares with a par value of $0.1. Walt Disney ha s not issued any of its preferred stock yet. There are significant differences between preferred stock and common stock. They includeOn the other hand, for Walt Disney to fully finance its operations it has to run through long and short debts. The long term debts include differed income taxes, borrowings, minority interests, and other unspecified long-term liabilities. To maintain short-term cash flow the company also has the following short-term debts account payables and other unspecified accumulated liabilities, current portion of borrowings and finally unearned royalties and other advances.Walt Disney like any other big company in United States has treasury stock of 780.3 million shares by 29th march, 2008. This is the stock that has been repurchased by the mickle from the public. The stock must be issued first, purchased by the public and paid for subsequently reacquired by the corporation, and cancelled or reissued. Treasury stock is not entitled to participate in dividen d distribution and finally it does not have