Thomson one-business school edition-walt disny prospectus - Essay Example

To ensure business maturity the company has increased its diversification in a range of products apart from media. The 2008 Disney Walt Prospectus Plan In 2008 the company came up with a plan to its investors or shareholder. The main aim of this plan was to encourage investor confidence by providing long-term stock ownership among the current stock holders and new stock holders. This was through providing a plat form through which shares could be purchased and then re-invested. The administrators of this plan were the Disney Shareholder Services Department.

Prior to this public offer the company acknowledged that there were some risks that the investors had to be prepared. In the prospectus, one was eligible if he/she had five common registered shares registered either in his name or in certificate. Suppose one had fewer than five shares registered in his name then he/she had to pay $250 as an initial investment. The minimum and the maximum amount to be invested was from $50 to $ 250 000 this included the initial investment (Craddock& Thomson Gale 2008).

The 2008 to 2010 period at Walt Disney The company offered $ 94.00 million as debenture which was to mature after three years. Through the years this value has greatly reduced in terms of value of the debt that the company owed the public. From the information from the data given the 2008 the company had the biggest debt. This explains why the company went to the public borrowing through its prospectus plan. The 2008 prospectus plan was meant to help the Walt Disney Company from debt and bring it back to solvency.

This was a bright and ambitious idea that the company had planned (Craddock& Thomson Gale 2008). The Debt to Capital, Comparison to Industry value at (2008- 0.32), (2009- 0.28), (2010- 0.25) , we can deduce the debt that Walt Disney proposed to public helped in a great deal the company to come back to solvency. The idea that comes to one mind is, did the investors who participated in this plan were they paid? This is logic because the more profitable a company becomes then the investors are expected to benefit automatically.

This is because it means that the company automatically gains more so it should the same to its shareholders who are the owners of the company (Craddock& Thomson Gale 2008). The percentage of the sales price Disney nets after discounts and commissions increased during this period. The increase in discounts meant that the price was slightly lower than normal. This was done essentially to attract more people to come and invest in this ambitious plan. The increase of sales automatically meant that the company had accumulated a lot of capital from the prospectus plan.

In any sale the decrease of the commodity price usually leads to more sales, this is because it increases the demand by the people to acquire the commodity as each every one has the power to purchase the commodity (Craddock& Thomson Gale 2008). The company was able to use the funds from the 2008 prospectus plan since the company`s debt over time has been decreasing exponentially bringing it back to solvency. The company was able to turn around and it diversified most of its operations, products and services.

This shows in entirety that the funds that the investors put in the company were able to be put in good use. The company has now come to solvency though not fully