Info

8.00%

8.00%

8.00%

8.00%

8.00%

Dividend Payout Ratio

33.86%

33.86%

33.86%

33.86%

33.86%

33.86%

With the higher capital expenditures and maintaining the existing dividend payout ratio of 33.86%, the debt ratio is 16.19% by the end of year 5. This is the riskiest strategy of the three, since it presupposes the existence of enough good investments (or acquisitions) to cover $ 15 billion in new investments over the next 5 years. It may, however, be the strategy that seems most attractive to management that intent on building a global entertainment empire.

All of this analysis was based upon the presumption that Disney would not be the target of a hostile acquisition. In February 2004, Comcast announced that it would try to acquire Disney. While the bid was withdrawn three months later and excess debt capacity was never cited as a reason for it, is does put pressure on the time table that Disney faces both for raising the debt ratio and improving returns on investments.

Debt Free Network Marketing

Debt Free Network Marketing

You and I are aware that cash flow is king in network marketing. Just like any other business, if you don’t have cash in hand, your entire business will come to a grinding HALT! Make no mistake about this because in network marketing, if you don’t have the right mindset and you don’t keep a watchful eye on your cash flow… you will become like the rest of the network marketing failures who run into debt!

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