Walt Disney Bonds

In: Business and Management

Submitted By ercampbe89
Words 1296
Pages 6
Assignment #1: Virginia Capital Portfolio Optimization

Stock | Mean of Return | Standard Deviation | IBM | 1.27% | 9.38% |
1) The below table shows the mean of IBM’s Stock to be 1.27% and the standard deviation to be 9.38%.

Stock | Mean | Standard Deviation | Complete Portfolio of Weighted S&P, Lehman, and MSCI | 0.67% | 2.75% |

The table above shows the mean and standard deviation of a portfolio with S&P 500, Lehman Brothers, and MSCI World Index when they are all equally weighted.

An argument that can be made for the client to sell IBM stock and diversify is about the risk involved. The standard deviation of IBM’s stock is sitting at about 9.34%, which is much higher than the diversified stocks’ standard deviation of 2.75%. This tells us that only having IBM stock creates a much more volatile return compared to the diversified portfolio. However, it is worth noting that the return for only having IBM stock is 1.27%, which is much higher than the return for the diversified portfolio, 0.67%. This concept makes sense because a higher risk should have higher return.

Stock | Weight | S&P 500 | 54.41% | MSCI World Index | 13.37% | Lehman Brothers | 32.02% |
3) The below table shows what the weight of each stock is when using the Excel solver to solve for a portfolio target standard deviation of 10%.

4) After running the solver to determine the weights for each stock with the specified target standard deviation, these are the results that came to be: S&P 500 | MSCI World Index
(Excluding US) | Lehman Brothers
Aggregate Bond Index | Target Standard Deviation | 1.74% | 6.46% | 91.80% | 2.00% | 29.63% | 10.23% | 60.14% | 6.00% | 77.70% | 16.71% | 5.59% | 14.00% | 118.87% | 21.35% | -33.22% | 20.00% |

Not all of these portfolios are feasible however. When attempting to find the weights for a…...

Similar Documents

The Walt Disney Company’s ”Sleeping Beauty” Bonds

...Case 2 - The Walt Disney Company’s ”Sleeping Beauty” Bonds Why long-term bonds? Disney Company’s management may speculate that the interest rate will rise in the long run, although the interest rate at that time was very low. Actually this speculation was opposite to the Federal Reserve, who tended to use more short-term debts rather than long-term ones. Based on Disney’s speculation, the company has much incentive to issue long-term bonds to lock a relatively low cost of capital from the market. Higher yield than 30-year US Treasury bonds Disney Bond has higher yield than 30-year US Treasury bonds for the following three reasons: First, Disney bond has a payment period for 100 years, with more liquidity risk; Second, since Disney bond is a global securities with higher credit risk compared with US Treasury bonds; Third, Disney’s bond incorporates a call option. Thus, investors require larger yield of this bond. Face value vs. coupon value From the perspective of the bondholder, semi-annual coupon payments are more valuable than the final payment of face value in terms of present value. If we use the coupon yield 7.55% as YTM, we could derive that present value for face value is $207,052.17, while present value for coupon payment is $149,999,785.65. Callable vs. non-callable a. From the investors’ perspective, the Company’s call option will make the bond less attractive at issuance date, because investors will bear the interest risk when the interest declines in 30......

Words: 583 - Pages: 3

Walt Disney

...without the presence of Disney characters in it. Growing up in Chicago Illinois, Walter Elias Disney strived for greatness. His decision to move to California ultimately would engine his profession as the most well known cartoonist of all time. Soon after his big break with the featurette of “Alice Comedy” he began his production in Hollywood. Walter Disney revolutionized the idea of entertainment by creating Mickey Mouse, Disneyland land, and also establishing the California Institute of the Arts. [86] From silent films to weekly programs, Mickey Mouse has always been in our lives. According to Walt Disney: A Biography http://disney.go.com/vault/read/walt/index.html, Mickey Mouse was created in 1928 and was used in a silent film entitled “ Plane Crazy” but later made his debut in “Steamboat Willie” the worlds first fully synchronized sound cartoon. Now in days we always see fully synchronized cartoons and don’t really give much thought to it because its normal. Walt Disney’s drive to perfect animation was tireless and to his success he became the first to create a fully synchronized sound cartoon in the late twenties. As Walt Disney said “ I only hope that we don’t lose sight of one thing- that it was all started by a mouse.” The whole Disney empire was started by one character whom at first didn’t even talk . Mickey Mouse is even the iconic symbol for the wonderful Disney franchise. As a result Mickey Mouse was the engine that helped fuel Walt Disney’s success as......

Words: 720 - Pages: 3

The Walt Disney

...The Walt Disney Co.: The Entertainment King Marta Aparici Hornero Business Strategy MG530 1. Why has Disney been successful for so long? Nowadays, the small animation studio which was created in 1923 by Walt and Roy Disney has been converted in one of the biggest Companies in the entertainment field. With a $30.000 million annual income. The Walt Disney Company manages eighteen theme parks, thirty-nine hotels, eight cinematographic studios, and eleven TV channels. Walt Disney pictures, the most important cinematographic studio, continues producing animated feature film, in a pretty fast pace. In May 2006, The Walt Disney Company acquired the animations studios Pixar. Although Pixar movies achieved a greater success, Walt Disney was the pioneer to animations in creating irreplaceable characters, which became extremely popular among children and adults. Its creativity was unreachable by anyone; they had a talent that nobody could approach. But not only Walt Disney was creative, also Roy Disney had a business talent, he handled money pretty good. Both of their skills and knowledge guided them to what the world wanted to see, to hear, to imagine at that time. Walt always wanted emphasized teamwork, communication, and cooperation. For example, when Walt learnt that his distributor owned the copyright of the Oswald franchise. Instead of fighting for it, and wasting time and money they decided to create a new character, Mickey Mouse. After creating him, to......

Words: 1317 - Pages: 6

Walt Disney

...thinkerWalt Disney was born on December 5, 1901 in Chicago, IL but lived in Marceline, MO for most of his childhood. Walt would sell drawings when young to make money. He then went to McKinley High School in Chicago, IL and studied art and photography. Walt tried to enlist in the military in 1918 but was rejected. Joined the Red Cross where he spent a year in France as an ambulance driver—driving an ambulance decorated in his paintings of Mickey Mouse. Walt went to Hollywood to pursue a commercial arts career. Walt’s “Alice Comedies” were a big success by 1925. II.The many successes of Walt DisneyWalt Disney had a plethora of success, even after he died. The images and creative processes he created while alive still live strong even today. Some of his accomplishments and successes were:1932: Walt won his first Academy Award1937: Snow White and the Seven Dwarfs debuted in Los Angeles during the depression. It became one of the biggest feats and unforgettable moments in the motion picture history. 1945: “The Three Caballeros” musical debuted and used the combination of real people with cartoons for the very first time. 1955: Walt Disney opened his first Disneyland Park. 1954: Walt began his television production. 1961: Walt was the first to have color on TV when he aired the show “Wonderful World of Color”. 1965: Walt had a great strategic vision and built the EPCOT center as a way to show others how to improve their quality of life. 1971: Because of Walt’s......

Words: 307 - Pages: 2

Walt Disney

... Walt Disney Walt Disney was famous for being one of the founders of cartoon animation. Walt Disney was born on December 5th, 1901. He was raised a Christian by his parents, Elias Disney and Flora (Call) Disney. His family was average sized for the day, with 7 members. Walt had 3 brothers (Herbert Arthur Disney, Raymond Arnold Disney and Roy Oliver Disney) and 1 sister (Ruth Lora Disney). At the age of 23 he married Lillian Bounds and had two daughters, Diane Marie Disney and Sharon Mae Disney. Diane married Robert Borgfelt Brown and Sharon married Ronald William Millar. Walt died from lung cancer on December 15th, 1966, at the age of 65. Walt Disney was not only a famous American film producer, but a director, screenwriter, voice actor, animator, entertainer, entrepreneur, international icon and philanthropist. He was the co founder of Walt Disney with his brother, Roy Disney. Over the years, Walt had not only won 22 of 59 nominations of the academy awards but 7 Emmies. He has 2 stars dedicated to him in the Hollywood walk of fame. On average he received (US) $36 Billion in a financial year. Mickey mouse was his feature animation, but this lovable character wouldn't have been created if it wasn't for NBC studios. Walt's original main cartoon was 'Oswald the Lucky Duck', until NBC studios claimed it as their own. After Walter and Roy lost the rights to their character, they created Mickey Mouse. In 1929, silly symphonies was released. It was a short cartoon that was......

Words: 379 - Pages: 2

Walt Disney

...Carranza Higa Project “Biography of a famous Character” “Walt Disney” Brianda Salas Gabriela Gonzalez Index: I- INTRODUCTION II- IMPORTANT EVENTS II.I- (CHRONOLOGICAL ORDER) III- PERSONAL LEARNING III.I- Brianda Salas III.II- Gabriela Gonzalez IV- CONCLUSIONS IV.I- Brianda Salas IV.II- Gabriela Gonzalez V- Extras VI- Images INTRODUCTION Walter Elias "Walt" Disney (December 5, 1901 – December 15, 1966) was an American business magnate, animator, producer, director, screenwriter, and voice actor. A major figure within the American animation industry and throughout the world, he is regarded as an international icon, and philanthropist, well known for his influence and contributions to the field of entertainment during the 20th century. As a Hollywood business mogul, he, along with his brother Roy O. Disney, co-founded the Walt Disney Productions, which later became one of the best-known motion picture producers in the world. The corporation is now known as The Walt Disney Company and had annual revenue of approximately US$36 billion in the 2010 financial year. As an animator and entrepreneur, Disney was particularly noted as a film producer and a popular showman, as well as an innovator in animation and theme park design. He and his staff created some of the world's most well-known fictional characters including Mickey Mouse, for whom Disney himself provided the original voice. During......

Words: 1310 - Pages: 6

Walt Disney

...The Walt Disney Company Financial Accounting Project Progress Report 2 8am M, W, Th Yuli Tang Wei Wang Tianda Xu Rui Zhang Profitability: In 2011, the profit margin of Walt Disney Company was 0.1176(11.76%). Due to the company’s huge net sales value, it shows a solid profit margin for a large company just as Walt Disney. In 2010, the profit margin was 0.1041(10.41%), which was 1.35% lower than 2011. The higher profits margin rate in 2011 indicates that the profit margin will increase in the future. Furthermore, the Walt Disney’s return on equity was 0.129(12.9%) in 2011, and the return on equity was 2.9% higher than the previous year, which showed that the Walt Disney keep steady profitability. Compared to its competitor DreamWorks Animation’s 0.123 profit margin, Walt Disney had lower profit margin that was 0.1041 (Appendix 2D). However, the ROE of DreamWorks Animation was 0.064(6.4%), which was much lower than Walt Disney (Appendix 1A&2A). Thus, Walt Disney made more profits than its competitor. The net income of Walt Disney in 2011 was $ 4,807,000,000, and it net sales was $40,893,000,000 (Appendix 1D). There are huge amount differences between net income and net sales. Because Walt Disney doesn’t have cost of good sold, the main reason is high cost and expense that was $ 33,112,000,000. In addition, income tax and interest expense were other factors determined the discrepancy. Liquidity and Capital Structure: As we know that a quick ratio can measure......

Words: 2949 - Pages: 12

Walt Disney

...Chapter 2 Literature Reviews “The Happiest Place on Earth” The Walt Disney Company is a leading international entertainment and media enterprise founded in U.S. It operates five separate Disney segments: Media Networks, Parks and Resorts, the Walt Disney Studios, Disney Consumer Products and Disney Interactive. Disney Media Networks is the most significant Walt Disney business segment. Disney’s products include television programs, books, magazines, musical recordings and movies. The Walt Disney Company is the world's largest media conglomerate, with assets encompassing movies, television, publishing, and theme parks. Walt Disney Studios produces films through imprints Walt Disney Pictures, Disney Animation, and Pixar. It also owns Marvel Entertainment and Lucas film, two extremely successful film producers. In addition, Walt Disney Parks and Resorts run its popular theme parks including Walt Disney World and Disneyland. 2.1 The meaning and Importance Marketing of Disney Company Disney Company’s goal is to be the most admired company in the world. They believe that they can achieve this goal by conducting their business and creating their products in an ethical manner, and by promoting the happiness and well-being of kids and families. 2.2 Principle of consumer analysis Walt Disney Company always makes surveys done yearly about consumer awareness of the brand. These measures help Disney to analyze which marketing strategy is working the best and which...

Words: 2440 - Pages: 10

Walt Disney

...WALT DISNEY PRODUCTIONS, JUNE 1984 One of the best examples of service through people is Walt Disney Productions… How Disney looks upon people, internally and externally, handles them, communicates with them, rewards them, is in my view the basic foundation upon which its five decades of success stand. —Peters and Waterman, In Search of Excellence In Search of Excellence didn’t simplify enough! In the private or public sector, in big business or small, we observe that there are only two ways to create and sustain superior performance over the long haul. First, take exceptional care of your customers via superior service and superior quality. Second, constantly innovate. That’s it. There are no alternatives in achieving long-term superior performance. Financial control is vital but one does not sell financial control. —Peters and Austin, A Passion for Excellence Ron Miller, president and chief executive officer of Disney Productions Inc., pondered the essence of his dilemma. For the past two-and-a-half months, his company had been the subject of a takeover attempt by Saul Steinberg, a well-known raider. The attempt had started innocently enough with the announcement of the purchase of 6.3% of Disney’s outstanding common stock. In subsequent announcements, Steinberg’s holdings rose to 12.1%. When Steinberg announced his intention of acquiring 25% of Disney, Miller undertook a series of evasive actions, including the purchase of Arvida Corporation for $200 million in......

Words: 6590 - Pages: 27

Walt Disney

...Walter Elias "Walt" Disney (/ˈdɪzni/;[2] December 5, 1901 – December 15, 1966) was an American business magnate, animator, cartoonist, producer, director, screenwriter, philanthropist and voice actor. A major figure within the American animation industry and throughout the world, he is regarded as an international icon,[3] well known for his influence and contributions to the field of entertainment during the 20th century. As a Hollywood business mogul, he, along with his brother Roy O. Disney, co-founded Walt Disney Productions, which later became one of the best-known motion picture production companies in the world. The corporation is now known as The Walt Disney Company and had an annual revenue of approximately US$45 billion in the 2013 financial year.[4] As an animator and entrepreneur, Disney was particularly noted as a film producer and a popular showman, as well as an innovator in animation and theme park design. He and his staff created some of the world's most well-known fictional characters including Mickey Mouse, for whom Disney himself provided the original voice. During his lifetime he received four honorary Academy Awards and won 22 Academy Awards from a total of 59 nominations, including a record four in one year,[5] giving him more awards and nominations than any other individual in history.[6] Disney also won seven Emmy Awards and gave his name to the Disneyland and Walt Disney World Resort theme parks in the U.S., as well as the international resorts......

Words: 293 - Pages: 2

Walt Disney

...it’s Mr. Walt Disney, Familiar isn’t? Disneyland I guess, you know about the famous land in HongKong that is full of Disney characters. Mr. Disney born on December 5 1901 in Chicago, his family settled in a village. At 1909 Walt attended in New Park School of Marceline, Walt Completed the second grade at Kansas and at school he met Mr. Walter Pfeffer who came from family of the catre aficionados. After 2 years, Wakt start to had a job that is selling newspaper , for 6 years walt sells newspaper, he wake up at 4am in the morning until evening, he found the work exhausting and he often received bad grades.Most of time you can consider Mr. Walt as a businessman , in 1917 his family acquired shares in the O-Zell jelly factory. He began as freshman at Mckinley Highschool he became the cartoonist for the school newspaper , drawing patriotic topics on World War I, And with hope to join the army Mr. Walt drop out of Highschool at the age of sixteen but he was rejected for being underage , afterwards Mr. Walt and his Friend joined the Red Cross and Mr. Walt becomes an ambulance driver in France for almost a year. As he comeback in his hometown, he seek for a job, but Mr. Walt is always failed to had a job because most of employer rejected him, because of his lack of imagination. Be cause no one consider to hire him, he hope to be an atleast an actor but in the end he focus in making political caricature, but still no one want’s to hire him . Thanks to his brother Roy, Walt got......

Words: 566 - Pages: 3

Walt Disney

...STRAT Case Study “The Walt Disney Company: Its Diversification Strategy in 2012 LELE SONG February 9, 2015 February 9, 2015 KEY ISSUES * Understand why a company’s resources and capabilities are central to its strategic approach: Diversification is Disney’s main strategy for constant growth. The company is broadly diversified, including five major segments. Disney attempted to capture synergies existing between its business units. * Strengthening a company’s market position by expansion: Disney aims to expand globally and exploit the business opportunities in the emerging market since the domestic market is about to be saturated. * Become aware of what the company should do to achieve operating excellence: Instead of letting technology throw threats at the company, Disney decides to embrace technology to enhance quality of products and improve customer experience. Disney’s success is highly dependent on technology. * Become aware of the strategic benefits and risks of expanding a company’s horizontal scope through mergers and acquisitions: Disney has a very clear acquisition strategy, and they have successfully acquired some valuable brands. Acquisition also benefits Disney for global expansion. ANALYSIS The Walt Disney Company (“Disney” or “the company”) was a broadly diversified median and entertainment company. In 2012 the company’s business units were organized into five divisions, which include media networks, parks and resorts, studio......

Words: 2522 - Pages: 11

Walt Disney

...Alexis Ll Ll | 1 Walt Disney As Walt Disney was growing up, his dad fathered many children. Walt’s parents traveled very much because they always seemed to see new and better things. They lived in England, Ohio, Missouri, Kansas, etc. Elias, Walt’s dad was a hard man. “He worked hard, lived modestly, and worshiped devoutly. He did neither smoking nor drinking nor cursing nor carousing.” (Gabler 3.) Walt was the age of four when his dad decided to move again. From Chicago to missouri, “That was the big moment when we were going to go away” said Walt. (Pg 9). “Walt Disney would remember Marceline, Missouri. He would remember it more vividly than anything else in his childhood, perhaps more vividly than any place in his entire lifetime.” His wife would say. “He didn’t live there very long. He lived in Chicago and Kansas City much longer. But there was something about the farm that was very important to him.” (Pg 10.) Although Walt did not start school until he was seven due to the fact that his parents didn’t have a way to take him. Walt still managed to stay in school and was most successful throughout High School. When Walt went to live in Chicago as summer was ending, he enrolled to William McKinley High School as a freshman. Walt had only been at McKinley High School about a month when the school magazine pronounced: “Walt Disney, one of the new consumers, has displayed unusual artistic talent and has become the Voice Cartoonist.” (Pg 33.) For most of......

Words: 2240 - Pages: 9

Walt Disney

...everything, Walter Elias Disney. Walt Disney was born December 5, 1901 in Chicago. He was an American film producer, director, screenwriter, voice actor, and animator. Today I’ll commensurate Walt Disney’s achievements throughout his life and how his memory still lives on with us today. (Transition: Walt Disney was an extraordinary man who has impacted everyone’s lives throughout the years.) Starting off Walt Disney’s career in the 1920s, he opened his own small company in the Kansas City area and called it, Laugh-O-Gram. His first major series was called Alice Comedies. These silent cartoons were produced from 1924-1927. The company eventually went bankrupt. (Transition: After his company went bankrupt, Walt then moved to Hollywood to start new) There he then created Mickey Mouse who is the best known creation of his. Mickey Mouse first appeared in “Steamboat Willie” on November 18, 1928 at the Colony Theater in NY. This was the world’s first synchronized sound cartoon. Walt Disney was originally going to name his masterpiece, Mortimer Mouse. His wife is the one who convinced him to use “Mickey”. According to his brother, Roy Disney, Mickey Mouse was Walt’s alter ego. Disney created many more well-known cartoons such as Minnie Mouse, Donald Duck, Goofy, Pluto, and Daisy Duck. (Transition: Now that Walt Disney has created these cartoons, he takes the next step in his career) Walter and his brother Roy were co-founders of Walt Disney Productions; Walt became......

Words: 726 - Pages: 3

Walt Disney

...world. Walt Disney was able to create a world in which fairytales and cartoons would be loved for decades. He was a creative genius. Walt Disney deserves to be honored because of all the joy he has brought so many of us. He started the company that brought us so many wonderful movies, TV shows, and amusement parks. He was the original voice of Mickey Mouse, perhaps the most successful cartoon character of all time. It’s hard to imagine that such great films such as Pinocchio, Fantasia, Bambi, Snow White and the Seven Dwarfs, Alice in Wonderland, Dumbo and Peter Pan were created by the man himself back in the 1930’s and 1940’s. He created Disneyland and Disneyworld, one of the world’s first theme parks, for children and adults to enjoy together. Walt Disney was born in Chicago on December 5th 1901 to Flora and Elias Disney. His family shortly moved to Marceline Missouri a few years later where he spent most of his childhood. Marceline is remembered to be the inspiration for Walt’s movie Lady and the Tramp and Main Street USA a theme land and first main entrance of almost every Disney Park. In his teen years Walt began to draw cartoons and shortly after joined the Red Cross as an ambulance driver. After the war Walt moved to Kansas City and started to draw cartoons again for a company called Laugh O Gram studio where his cartoons became hugely popular in the area. Though after becoming bankrupt he moved to Hollywood California where he and his brother started the Disney cartoon...

Words: 781 - Pages: 4