Here is the following information that I would need to answer about Disney: Step 6: Access to
Question:
Here is the following information that I would need to answer about Disney:
Step 6: Access to Target Sources of External Finance Having estimated the future financing need, management must identify the target sources (e.g., banks, insurance companies, public debt markets, public equity market) and establish financial policies that will ensure access on acceptable terms.
1. How sound is the firm’s financial structure, given its level of profitability and cash flow, its level of business risk, and its future need for finance?
2. How will the firm service its debt? To what extent is it counting on refinancing with a debt or equity issue?
3. Does the firm have assured access on acceptable terms to the equity markets? How many shares could be sold and at what price in “good times”? In a period of adversity?
4. What criteria are used by each of the firm’s target sources of finance to determine whether finance will be provided and, if so, on what terms?
What does this mean and where can I find this kind of information? I am at a loss with this class, and I do not understand this step of the financial analysis and where I can find this information about Disney company.
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg