Arundel partners the sequel project case solution PDF

Title Arundel partners the sequel project case solution
Author Praveen Ra
Course Finance II: Corporate Finance
Institution Northwestern University
Pages 3
File Size 221.6 KB
File Type PDF
Total Downloads 100
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Arundel partners the sequel project case solution...


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Ar undelpar t ner st hes equelpr oj ectcases ol ut i on 1. 1.Ar undelPar t ner sTheSequelPr oj ectcases t udywi t hs ol ut i onpdfAr undelPar t ner sc an dec i dedt oc r eat et hesequel orseekt hes er vi c esofanot herfi r mt oac hi ev et hat .Theyc an al s omak emoneyt hr oughanot hermet hodwher et her i ght scoul dbes ol dt ot hehi ghes t bi dderi ft hec ompanydoesnotwantt opr oducet hesequel byi t sel f .Theymus tfigur eouthow muchmoneyt heys houl ds pendoneac hfil mi nor dert omak eapr ofi t .Ar undel Par t ner si sa t r ul yfi nanc i al companyt hat ' scons i der i ngadi s t i nct i v ei nv es t mentunder t ak i ng.Theyc an wi t hhol dt her emai ni ngpay menti ft hes t udi oabandonst hepr oduct i onoft hefi r st fi l m. I nt r oduc t i onAr undel Par t ner swoul dbei nt er es t edi nbuyi ngt hes equelr i ght sf oroneormor e s t udi osent i r epr oduct i onov erapr ol ongedper i odofnotunderay ear .Ar undel Par t ner sThe SequelPr oj ec t Cas eSol ut i onandt r eat mentpl anex ampl er eadmor eonCases ol Thec as e c ompr i s esc as hfl owest i mat esf oral l si gni fic antfil msr el eas edi nt heUSAdur i ng1989.I t i s s t r uc t ur edi nawayt oal l owt hest udent st ounder s t andt her eal opt i onsandway sofv al ui ng t hem.I t ' sex pect edt hatev er ys t udenthasr eadt hec as eandi sr eadyt obegi nt he di s c us si on.Thec as eut i l i z esc as hflowappr o xi mat i onsf oreac hoft hemai nfi l mst hatwer e l aunc hedi nt heus adur i ngt hecal endary ear1989.Theappeal scour t di s cov er edt hatt he poi ntwasnotabl et ober ai s edaf t ert het r i al .I fas peci fi cfi l m wasahi t ,t hecus t omercoul d. I ngener al ,t hemovi ei sadel i ghtf r ombegi nni ngt ofini sht hatent er t ai nsbot hadul t sandki ds wi t hs t agger i ngeas e.Al so,pur c hasi ngapor t f ol i odi v er si fi est hec hanc eofamov i enot bec omi ngas equelc onsi der i ngt hatt hebul koffi l msdon' thav esequel st hatf ol l ow. 2. 2.TheNumberOneQuest i onYouMus tAs kf orAr undel Par t ner sTheSequel Pr oj ectCase Sol ut i onSuppor t i nc l udesi mpac tonpr ofi t ,shar e ,andany t hi ngel s et hatcoul di nfl uencel ongt er m busi nes sai msoft hefi r m.Yous houl dt r yandunder s t andnot mer el yt heor gani z at i onbut l i k ewi s et hei ndus t r yt hatt hec ompanyoper at esi n.Di mensi onal i z et hes i gni fic anceoft he pr obl em t ot heor gani z at i onandt hewayt hati ti si mpact i ngt heor gani z at i on.Fi nal Gr oup Repor tEac hgr oupac c ount sf orc hoosi ngat opi cl i nk edt ot hec our s eandwr i t i ngagr oup s t udyont hechos ent opi c .Sec ond,t hei nv es t orgr oupwoul dn' t mak ear t i s t i cj udgment sort r y t ochoos et her i ght sf orcer t ai nmovi esbasedonpr edi c t i onsofapot ent i al s equel ' ss uc cess . TopChoi c esofAr undel Par t ner sTheSequel Pr oj ec t Cas eSol ut i onForf ur t herai dt or efi ne t her i ght ' sv al ue,i twoul dbehel pf ult ohav eabet t erknowl edgeoft hefil m busi nes sl at eron, s peci fi cal l ywheni tcomest ot r endsandpopul ar i t yofs equel s .Thei nt entofa r ec ommendat i onmemoi st oconc i sel ys uggest apl anofac t i onandofferr at i onal esuppor t i ng t her ec ommendat i on.Thet ar getoft hec l assi st ogetst udent st odev el opt hec apabi l i t yt o di s t i l t hei mpor t antpr obl ems ,dev el opal t er nat i v es t r at egi est omanaget hem,andev al uat e adv ant agesanddi s adv ant agesofeac hal t er nat i v ei nacoher entway .Ofc our set her es ul t sof t het r uepr oj ec t canbepos i t i v eandnegat i v e,butj us t hav i ngt hechancet opr ofi tf r omt he pos si bl epos i t i v eout comef orav al ue.Ass t at edpr ev i ousl y ,t hechanceofpr oduc i ng as ymmet r i ci nf or mat i oni sasubs t ant i al pr obl em t oAr undel .You' r epr edi c t edt odi es omuc h,i n r eal i t y ,t hatt her e' sadedi cat edr es pawnbut t onont hec ont r ol l er .Thei deawasmeantt o c api t al i z eonaf ews peci fi cf eat ur esoft hemovi emar k et .I t wast opur c has e 3. 3.sequelr i ght st o.Concl usi onThi si nnov at i v es mal l busi nes si deai squi t ei nt r i gui ngand r eal l ygr eat .Ass oonasy ouhav edev el opedmul t i pr ongeds t r at egyandwor koutv ar i ous s ugges t i onsdependi ngont hes t r at egi ct ool s .As at i s f ac t or ypr oc edur eofpay ment oughtt obe agr eed.Thev al ueandr ev enueoft henor mal sequel fil mi sgoi ngt obe120% and70% oft he fi r s t one.Techni c al l y ,t hec os t mi ghtbeasl ar geas$4.As set v al uei st hees t i mat edr ev enue Ar undelwoul dr ec ei v easacons equenc eofex er ci s i ngt heopt i ont oc r eat et hes equel por t f ol i o.Thenetpr esentv al ueofhy pot het i cals equel st ak enf r omt heav ai l abl epr evi ous y ear ss howsnot j us t t hatt hebusi nes si shi ghl yv ol at i l e,buti naddi t i ont hatcer t ai npr oduc t i on

s t udi osar es omewhat mor ev ol at i l et hanot her swi t hr espec tt ot hei rl at es tper f or manc e.Si nc e i t ' st hei nv es t ment ,i t ' safi x edv ar i abl eanddoes n' t hav et obedi s count ed,ors ot hev al ueof $22.Pr ac t i c al l y ,t hec ompanyhast obepos i t i onedsuc hi thasappr opr i at ei nf or mat i onfl ow, andoppor t uni t i est oac t .Unl i k efinanc i al pos si bi l i t i es ,managemental s oneedt ocr eat eor di s cov err ealc hoi c es ,andsuc hcr eat i onanddi s cov er ypr ocedur ecompr i s esan ent r epr eneur i al orc ompanyt as k.I t mus tal sohav eappr opr i at eacc es st ot hi scapi t al . Addi t i onal l y ,t hes t r at egyofpur chas i ngapor t f ol i oofr i ght sasanal t er nat i v et onegot i at i ng fi l mby fi l mgi v esAr undel anadv ant agesi nc ei tdi s al l owsas t udi of r omnegot i at ehi gherr at es ofsequel r i ght sdependi ngont hes uc ces sofsomeonefi l m....


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