4,094 million BR

60 Disney reports total commitments of $715 million beyond year 6. Using the average commitment from year one through five as an indicator, we assumed that this total commitment would take the form of an annuity of $178.75 million a year for four years.

61 If the debt had been predominantly nominal BR debt, we would have used a nominal BR cost of debt.

There are no lease commitments reported in Aracruz's financial statements.62

In table 4.16 we contrast the book values of debt and equity with the market values for Disney and Aracruz. The market value of equity is estimated using the current market price and the number of shares outstanding.

Table 4.16: Book value versus Market Value: Debt Ratios
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