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Case
| HBS Case Collection
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1991
(Revised from original 1987 version)
Walt Disney Co.'s Yen Financing
by
W. Carl Kester and William B. Allen
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Abstract
Walt Disney is considering hedging future yen inflows from Disney Tokyo. It is evaluating techniques using FX Forwards, swaps, and Yen term borrowings. Goldman Sachs presents a rather unusual but potentially attractive solution: Disney could issue ECU Eurobonds and swap into a Yen liability. The case explains how this alternative would work and suggests to the students ways to evaluate the hedging choices.
Keywords: Borrowing and Debt;
Currency;
Bonds;
Valuation;
Tokyo;
Citation:
Kester, W. Carl, and William B. Allen. "Walt Disney Co.'s Yen Financing." Harvard Business School Case 287-058, September 1991. (Revised from original January 1987 version.)