Disney has assets worth $250.378 billion. It has debt with a total face value of $38.057 billion.

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Disney has assets worth $250.378 billion. It has debt with a total face value of $38.057 billion. If the risk-free interest rate is 0.375% per annum and the standard deviation of monthly returns on the company's stock is 0.0741, what is the likelihood the company will be unable to repay the debt in eight years when it is due?

Posted Date: May 11, 2024 03:32 AM

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Disney has assets worth $250.378 billion. It has debt with a total face value of $38.057 billion.

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To solve this problem we can use the Merton model which is a structural approach to estimating the p... View the full answer

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