Arundel Case

Arundel Partners: The Sequel Project Case study Outline decision maker director thickset 2 Summary of Facts3 report of Problem3 enthronement analysis4 Valuation methods: Discounted change accrue (supported by encounter 1)5 Decision Tree (supported by Annex 2)6 Real options (supported by Annex 3)7 Contract edible7 Recommendations8 Executive summary The main problems arising in Arundel Partners investment decision in a portfolio of posteriority rights is how to hold dear these rights in order to mold whether such investment makes sense, how more than they should pay for these rights and the contractual nutrition that should be agreed upon with the studios in order to align the incentives of some(prenominal) parties. By analyzing all the entropy available, we pile argue that in that location is big(p) potential for value times for Arundel, as the studios are unstrained to accept low prices for the good continuation rights, due to the fact that, in general, these rights were not sold in that period and they were not stock-still taken into assureation when the first photograph was produced. From Arundels perspective, the sequel rights can be considered, on average, undervalued securities.

When exploitation the Discounted Cash play go on and the decision tree method, we submit discovered that ii of the 6 studios considered for collaboration namely, MCA Universal and The Walt Disney conjunction have sequel rights that fork over a positive lowest present value. Since we consider that the real number options approach best mimics the domain of this case, we as well as enlist this method on a studio portfolio basis, and discover that to a suspension the two studios mentioned above, Warner Brothers sequel rights also seem to be underpriced. In this setting, we recommend that Arundel Partners pay a maximum of US$5.55 gazillion for MCA Universal, US$7.96 million for Warner Brothers and US$9.75 million for the Walt Disney Company sequel...If you demand to get a honorable essay, order it on our website: Orderessay

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