Aswath Damodaran 141
The Disney/Cap Cities Merger: Pre-Merger
Disney:
! Beta = 1. 15
! Debt = $ 3 , 186 million Equity = $ 31 , 100 million Firm = $ 34 , 286
! D/E = 0. 10
ABC:
! Beta = 0. 95
! Debt = $ 615 million Equity = $ 18 , 500 million Firm= $ 19 , 115
! D/E = 0. 03