The case contains cash flow estimates for all major films released in the united states during 1989. The idea was to purchase sequel rights to films produced by some major movie studios. A group of investors arundel group is looking into the idea of purchasing the sequel rights. The sequel project case analysis, arundel partners. Critical research paper the mocking of crist by edouard manet natallia kolas oakton community college dp campus hum 123 6. View test prep ap answer final from ef 5052 at university of miami. A group of investors is contemplating the purchase of sequel rights for a selection of feature movies. After refreshing your mind, read your case study solution critically. Problem statement the investment group, arundel partners, is seeking to create an innovative business where the ability to create and produce movie sequels is transformed into an option market.
Arundel partners the sequel project case solution and. Excel addin to create a monte carlo analysis of the uncertainty facing the bidder. Arundel partners the sequel project case study with solution pdf arundel partners can decided to create the sequel or seek the services of. Arundel partners leads off section 4, on real options and capital budgeting. Arundel partners case analysis essay 1441 words 6 pages spootyhead apr 17, 2007 arundel partners case analysis arundel partners case analysis executive summary. Their available data shows that the movies released by the major studios account for 93% of all the revenues received from us and. The sequel project with the purchase of sequel rights, what arundel is achieving is to have a call option on the revenue that each movie brings. Advanced corporate finance brandon julio, spring 2012 buying movie sequel rights. Feel free to contact us to get your case studies done. Explore the arundel partners llc business page in marion, ma. Arundels proposal is based on buying the sequel rights for a studios entire production for one two years before the first movies are even made.
Designed to introduce students to real options and techniques for valuing them. Read this business case study and over 89,000 other research documents. The sequel project case study solution, arundel partners. The sequel project excel file, subjects covered capital budgeting decision trees managing uncertainty option pricing real options securities analysis by timothy a. The sequel project case study solution and analysis, arundel partners is a financial company that is contemplating an unusual investment project. Their theory is that they can make a profit by securing sequel rights and providing seed capital to films even before production starts, thus avoiding the asymmetric information problem that would arise as the film progresses and the studio gains more and more. Davis, a movie industry analyst at paul kagan associates, inc. When we are writing case study solution we often have details on our screen as well as in our head. Case studies over the years, arundel resolution personnel have been instructed by united nations agencies, flag states, ship owners, charterers, logistics operators, marine insurers and others to act on the front line on a range of sensitive issues around the world. They need to decide the amount to propose for the purchase and how to design a contract which involves one or more of the primary film studios in the us. You are expected to have read the case and prepared.
Ap answer final ef5052 investments case 3 arundel partners the. You should turn in your memo at the beginning of class. These data are used to generate estimates of the value of sequel rights prior to the first films release. We next needed to answer the question of how much arundel should be willing to pay for these sequel production rights. Major hbr cases concerns on a whole industry, a whole organization or some part of organization. The sequel project case study solution, this case study is about a clique of investors looking to buy further portfolio of feature films. This gives the studio the cash flow to produce the first film but mitigates arundel partners risk in case there are issues with the production of the first film. In most courses studied at harvard business schools, students are provided with a case study. It is highly important for arundel partners to buy the portfolio of rights of the movies in advance, as compared to negotiating on a filmbyfilm basis because, on individual basis, it would be able to form opinion about the movie and arundel partners can be placed at a disadvantaged position. Arundel has an interesting idea to buy rights to movie sequels. The maximum perfilm price for the sequel rights that arundel partners should pay is. Solutions to arundel partners case answered by a verified lawyer. This helps to remove the uncertainty and risks associated with producing a movie, especially with regard to moviegoers.
If arundel partners were to use the traditional dcf methods to find the value of the sequel rights, the npv would be. Our analysis of the proposal includes a net present value npv calculation of each movie. As owner of these rights, the client would judge the. Arundel partners llcs mission is to provide recommendations to our clients to assist them in making informed business decisions. This leads to either missing details or poor sentence structures.
Arundel case study 2 essay 749 words essay about tesla case study 2 arundel case study essay investment group, arundel partners, that would exist solely for the purpose of purchasing sequel rights to motion pictures produced by major u s movie studios arundel case essay arundel partners. They would be occupied with purchasing the sequel rights for at least one studio. The case contains cash flow estimates for all major films released in the united states. Introduction in 1992, arundel partners was looking into the idea of purchasing the sequel rights associated with films produced. Arundel partners net present value standard deviation scribd. Download as doc, pdf, txt or read online from scribd. The sequel project case solution, a group of investors considering the purchase of a portfolio of sequel rights for feature films. Arundel partners the sequel project case solution slideshare. Arundel partners the sequel project case solution,arundel partners the sequel project case analysis, arundel partners the sequel project case study solution, arundel partners the sequel project case study solutions why do the principals of arundel partners think that they can make money buying movie sequel righ. The sequel project harvard business school teichner, william a on.
Arundel partners will disburse the payments for the sequel rights over 12 months in the first year of production. Arundel case study essay example for free newyorkessays database with more than 65000 college essays for studying. Download file pdf arundel partners case solution everybody, if you desire to start joining like others to log on a book, this pdf is much recommended. Essay on solutions to arundel partners case 1452 words. Arundel partners the sequel project case study solution. Corporate finance kellogg school of management northwestern. The sequel project case study analysis, subjects covered capital budgeting decision trees managing uncertainty option pricing real options securities analysis by timothy a. Arundel partners case analysis essay 1499 words bartleby.
You may work in groups of up to 6 individuals on the cases. What are the primary advantages and disadvantages of the approach you took to valuing the rights. What is the perfilm value of the sequel rights for 1989based upon discounted cash flow methods. Case memos answers are due the day we disc uss the case. View notes case study 5 from fin 324 at binghamton university. Do not repeat the facts of the case i have read it. Introduction in 1992, arundel partners was looking into the idea of purchasing the sequel rights associated with films produced by one or more major movie studios. And you craving to acquire the photo album here, in the associate download that we provide.
The sequel project case solution question 1 why do the principals of arundel partners think that they can make money buying movie sequel. You need to decide how much to offer to pay and how to str. Arundel partners net present value standard deviation. Their available data shows that the movies released by the major studios account for 93% of all the revenues received from us and the top 10 films. Harvard business case studies solutions assignment help. A free powerpoint ppt presentation displayed as a flash slide show on.
Jan 30th arundel partners case questions dividend policy. What further assistance or data would you require to refine your estimates of the rights value. Arundel s proposal is based on buying the sequel rights for a studios entire production for one two years before the first movies are even made. Two models had been used which are the dcf and the black scholes model for valuing the film rights. Arundel partners llc marion, ma business information. Arundel partners case solution and analysis, hbs case. The sequel project case study outline executive summary 2 summary of. The sequel project introduction and questions prof. The sequel project case solution, a group of investors plans to buy the rights to a portfolio of sequel movies. In addition to this, there would be complete production over an extended time of at least a year.
The company is looking to buy rights to possible sequels for. Case study 5 case study 5 arundel partners the sequel. Arundel partners case advanced corporate finance brandon. Arundel partners case solution arundel partners case solution pro reverb manual, serway college physics 6th edition, moore and mccabe 6th edition solutions bing, insurance handbook for the medical office chapter 8, manual nokia 5300. Arundel partners case analysis term paper warehouse. Arundel partners the sequel project alfred frances lucas hennessey rick. Arundel partners case case study solution case study. Arundel partners case study solution case study analysis. The results demonstrate that small businesses that innovate are indeed special and that the technology they create helps define the cutting edge in a number of industries.
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