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Publications
  • January 1987 (Revised September 1991)
  • Case
  • HBS Case Collection

Walt Disney Co.'s Yen Financing

By: W. Carl Kester and William B. Allen
  • Format:Print
  • | Language:English
  • | Pages:11
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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, January 1987. (Revised September 1991.)

About The Author

W. Carl Kester

Finance
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