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59 Preferred stock should really not be treated as debt. In this case, though, the amount of preferred stock is small that we have included it as part of debt for Disney.

To convert the book value of debt to market value, we use the current pre-tax cost of debt for Disney of 5.25% as the discount rate, $13,100 as the book value of debt and the current year's interest expenses of $ 666 million as the coupon:

Estimated MV of Disney Debt = 666

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