Parameters

Avg. Hypothetical Net Inflow of Sequel

Avg Hypothetical Negative Cost of Sequel
WACC (based on 6% semiannual discount rate)
Avg. Hypothetical Net Inflow of Sequel (discounted to Year 0)
T

exp(T)
U (continuously compounded returns in up step in binomial tree)
D (down step in binomial tree)
risk-free rate (based on 10yr US Treasury rate in 1992)
exp(rT)
q (risk-neutral probability of up move, using Lognormal model)
Avg Hypothetical Negative Cost of Sequel (discounted to Year 2)

Values
$ 21.57
$ 22.67
12.36%
$ 13.53
0.083
121%
1.418
1.418
0.705
7.03%
1.006
0.422
$ 19.79

Binomial Tree for Net Inflo

0
1
2
$ 13.53 $ 19.19 $ 27.21
$ 9.54 $ 13.53
$ 6.73

Binomial Tree for Per-Film O

0
1
2
$ 5.12 $ 8.73 $ 14.56
$ 2.54 $ 4.56
$ 1.09

Binomial Tree for Net Inflow of Sequel (using lognormal distribution)

3
4
5
6
7
8
9
10
$ 38.59 $ 54.73 $ 77.61 $ 110.05 $ 156.06 $ 221.30 $ 313.82 $ 445.02
$ 19.19 $ 27.21 $ 38.59 $ 54.73 $ 77.61 $ 110.05 $ 156.06 $ 221.30
$ 9.54 $ 13.53 $ 19.19 $ 27.21 $ 38.59 $ 54.73 $ 77.61 $ 110.05
$ 4.75 $ 6.73 $ 9.54 $ 13.53 $ 19.19 $ 27.21 $ 38.59 $ 54.73
$ 3.35 $ 4.75 $ 6.73 $ 9.54 $ 13.53 $ 19.19 $ 27.21
$ 2.36 $ 3.35 $ 4.75 $ 6.73 $ 9.54 $ 13.53
$ 1.66 $ 2.36 $ 3.35 $ 4.75 $ 6.73
$ 1.17 $ 1.66 $ 2.36 $ 3.35
$ 0.83 $ 1.17 $ 1.66
$ 0.58 $ 0.83
$ 0.41

Binomial Tree for Per-Film Option Price (using Rick-Neutral Probabilities)

3
4
5
6
7
8
9
10
$ 23.79 $ 38.06 $ 59.54 $ 91.17 $ 136.84 $ 201.97 $ 294.38 $ 425.46
$ 7.97 $ 13.63 $ 22.77 $ 37.08 $ 58.78 $ 90.72 $ 136.61 $ 201.74
$ 2.12 $ 3.92 $ 7.10 $ 12.57 $ 21.63 $ 36.08 $ 58.16 $ 90.49
$ 0.35 $ 0.83 $ 1.64 $ 3.19 $ 6.08 $ 11.30 $ 20.34 $ 35.17
$ 0.24 $ 0.52 $ 1.11 $ 2.34 $ 4.83 $ 9.72
$ 0.04 $ 0.10 $ 0.23 $ 0.55 $ 1.31
$
$
$
$
$
$
$
$
$
$
-

$
$
$
$
$
$
$
$
$
$
$
$

11
631.07
313.82
156.06
77.61
38.59
19.19
9.54
4.75
2.36
1.17
0.58
0.29

12
$ 894.90
$ 445.02
$ 221.30
$ 110.05
$ 54.73
$ 27.21
$ 13.53
$ 6.73
$ 3.35
$ 1.66
$ 0.83
$ 0.41
$ 0.20

$
$
$
$
$
$
$
$
$
$
$

11
611.40
294.15
136.38
57.93
18.92
3.11
-

12
$ 875.11
$ 425.23
$ 201.51
$ 90.26
$ 34.94
$ 7.42
$
$
$
$
$
$
-

Arundel Partners
Exhibit 6 (amounts in millions of constant (1991) dollars)
First Film
Film

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51

Studio
Parenthood
MCA Universal
Born on the Fourth of July
MCA Universal
Field of Dreams
MCA Universal
Uncle Buck
MCA Universal
Sea of Love
MCA Universal
Always
MCA Universal
K-9
MCA Universal
The Burbs
MCA Universal
The Dream Team
MCA Universal
Do the Right Thing
MCA Universal
Dad
MCA Universal
Shocker
MCA Universal
The Wizard
MCA Universal
Renegades
MCA Universal
Harlem Nights
Paramount
Pet Sematary
Paramount
Black Rain
Paramount
Major League
Paramount
Cousins
Paramount
We're No Angels
Paramount
Let it Ride
Paramount
Shirley Valentine
Paramount
Fat Man and Little Boy
Paramount
The Experts
Paramount
Look Who's Talking
Sony
When Harry Met Sally
Sony
Steel Magnolias
Sony
See No Evil; Hear No Evil
Sony
The Bear
Sony
Glory
Sony
Look Up
Sony
Casualties of War
Sony
Chances Are
Sony
Family Business
Sony
She's Out of Control
Sony
Who's Harry Crumb?
Sony
Adventures of Baron Munchausen
Sony
True Believer
Sony
Troop Beverly Hills
Sony
Tap
Sony
Deepstar Six
Sony
Johnny Handsome
Sony
Music Box
Sony
Immediate Family
Sony
Listen to Me
Sony
Physical Evidence
Sony
Old Gringo
Sony
Loverboy
Sony
Sing
Sony
Winter People
Sony
Welcome Home
Sony

Revenues
U.S. Theatre
Other
$
55.0 $
146.1
$
40.5 $
110.9
$
33.6 $
94.1
$
33.3 $
93.6
$
31.5 $
89.0
$
22.0 $
66.1
$
20.5 $
62.3
$
19.0 $
58.9
$
15.8 $
51.1
$
14.6 $
48.2
$
11.9 $
41.5
$
8.3 $
32.7
$
5.5 $
26.1
$
4.6 $
23.9
$
36.3 $
100.8
$
29.1 $
83.2
$
27.5 $
79.4
$
23.7 $
70.1
$
11.0 $
39.4
$
5.5 $
26.1
$
2.3 $
18.3
$
2.3 $
18.3
$
1.5 $
16.5
$
$
12.7
$
75.8 $
196.5
$
46.1 $
124.5
$
44.0 $
119.4
$
22.5 $
87.1
$
14.9 $
48.7
$
14.3 $
47.4
$
8.8 $
34.1
$
8.1 $
32.5
$
7.2 $
30.1
$
6.6 $
28.7
$
5.7 $
26.6
$
5.0 $
24.7
$
4.3 $
23.1
$
4.1 $
22.6
$
4.0 $
22.3
$
3.9 $
22.1
$
3.4 $
21.0
$
2.9 $
19.7
$
2.8 $
19.4
$
2.3 $
18.3
$
2.0 $
17.5
$
1.7 $
16.7
$
1.5 $
16.5
$
1.5 $
16.5
$
1.0 $
15.1
$
0.8 $
14.6
$
0.4 $
13.8

Dist. Fees
$
53.6
$
40.3
$
34.0
$
33.8
$
32.1
$
23.4
$
22.0
$
20.7
$
17.8
$
16.7
$
14.2
$
10.9
$
8.4
$
7.6
$
36.5
$
29.9
$
28.5
$
25.0
$
13.4
$
8.4
$
5.5
$
5.5
$
4.8
$
3.4
$
72.6
$
45.4
$
43.5
$
23.8
$
16.9
$
16.4
$
11.4
$
10.8
$
9.9
$
9.4
$
8.6
$
7.9
$
7.3
$
7.1
$
7.0
$
6.9
$
6.5
$
6.0
$
5.9
$
5.5
$
5.2
$
4.9
$
4.8
$
4.8
$
4.3
$
4.1
$
3.8

Costs
Dist. Exp.
$
43.1
$
33.1
$
31.6
$
30.2
$
32.0
$
28.0
$
20.9
$
22.9
$
19.0
$
14.6
$
20.0
$
14.6
$
9.5
$
7.6
$
41.7
$
27.1
$
31.6
$
26.1
$
14.4
$
19.9
$
10.8
$
5.6
$
9.2
$
0.8
$
51.7
$
38.1
$
35.9
$
23.1
$
22.5
$
14.5
$
16.1
$
17.1
$
15.4
$
16.5
$
12.2
$
13.2
$
7.8
$
12.8
$
11.5
$
11.4
$
10.0
$
9.7
$
8.4
$
12.1
$
12.0
$
9.2
$
6.6
$
10.5
$
9.0
$
6.3
$
4.9

52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99

Adventures of Milo and Otis

Sony
The Big Picture
Sony
Slaves of New York
Sony
Eat a Bowl of Tea
Sony
To Kill a Priest
Sony
Me and Him
Sony
Bloodhounds of Broadway
Sony
The War of the Roses
20th Century Fox
The Abyss
21st Century Fox
Weekend at Bernie's
22nd Century Fox
Say Anything
23rd Century Fox
Skin Deep
24th Century Fox
The Fabulous Baker Boys
25th Century Fox
Millenium
26th Century Fox
Worth Winning
27th Century Fox
Gleaming the Cube
28th Century Fox
How I Got Into College
29th Century Fox
When the Whales Came
30th Century Fox
Batman
Warner Bros
Driving Miss Daisy
Warner Bros
Tango & Cash
Warner Bros
Lean on Me
Warner Bros
Her Alibi
Warner Bros
Next of Kin
Warner Bros
Pink Cadillac
Warner Bros
Young Einstein
Warner Bros
Dead-Bang
Warner Bros
Dead Calm
Warner Bros
Second Sight
Warner Bros
See You in the Morning
Warner Bros
In Country
Warner Bros
Cookie
Warner Bros
How to Get Ahead in Advertising Warner Bros
Powwow Highway
Warner Bros
Bert Rigby, You're a Fool
Warner Bros
Penn & Teller Get Killed
Warner Bros
Checking Out
Warner Bros
Honey, I Shrunk the Kids
Walt Disney
Dead Poets Society
Walt Disney
The Little Mermaid
Walt Disney
Turner & Hooch
Walt Disney
Three Fugitives
Walt Disney
An Innocent Man
Walt Disney
Blaze
Walt Disney
New York Stories
Walt Disney
Gross Anatomy
Walt Disney
Disorganized Crime
Walt Disney
Cheetah
Walt Disney

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

0.1
0.1
0.1
0.1
45.6
31.6
15.4
9.8
9.4
8.8
2.6
1.7
1.2
0.6
165.6
55.6
33.1
15.8
10.1
7.7
7.5
6.6
3.9
3.6
2.8
2.4
1.8
1.1
0.2
0.1
80.0
53.3
44.2
38.8
20.4
11.6
9.9
5.2
5.1
4.4
4.4

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

13.0
13.0
13.0
13.0
12.7
12.7
12.7
123.2
89.3
50.1
36.5
35.4
34.1
19.1
16.7
15.7
14.1
12.7
414.2
147.4
93.0
51.5
37.3
31.4
30.9
28.7
22.1
21.5
19.4
18.6
17.0
15.4
13.3
13.0
12.7
12.7
12.7
206.7
141.8
120.0
106.9
62.1
40.7
36.7
25.3
25.0
23.4
23.4

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

3.5
3.5
3.5
3.5
3.4
3.4
3.4
44.9
32.2
17.4
12.3
11.9
11.4
5.8
4.9
4.5
3.9
3.4
154.5
54.1
33.6
17.8
12.6
10.4
10.2
9.4
6.9
6.7
5.9
5.6
5.0
4.4
3.6
3.5
3.4
3.4
3.4
76.4
52.0
43.7
38.8
21.9
13.9
12.4
8.1
8.0
7.4
7.4

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

6.0
0.8
1.5
0.8
0.8
0.8
0.8
39.1
37.2
16.3
15.2
15.0
16.1
7.1
10.5
6.5
8.8
1.4
102.0
43.3
40.4
17.7
16.6
14.3
16.8
11.3
11.4
10.1
9.7
9.8
9.3
5.1
0.9
0.8
1.4
0.8
0.8
58.6
46.2
38.6
32.5
22.2
17.2
17.8
10.7
13.2
11.7
10.4

All Film Average

14.9

49.0

17.0

17.4

rtners
constant (1991) dollars)

Costs
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

Negative
22.0
19.8
17.6
16.5
27.5
34.1
13.2
18.7
16.5
7.7
20.9
6.6
8.8
13.2
33.0
12.1
33.0
13.2
14.3
24.2
19.8
8.8
20.9
13.2
11.0
20.9
24.2
19.8
23.1
23.1
18.7
27.5
19.8
19.8
16.5
15.4
57.1
15.4
19.8
16.5
8.8
22.0
19.8
15.4
16.5
18.7
37.3
11.0
15.4
17.6
15.4

Hypothetical Sequel
Revenues
Costs
U.S. Theatre
Other
Dist. Fees
Dist. Exp.
$
38.5 $
106.1 $
38.5 $
32.6
$
28.4 $
81.4 $
29.2 $
26.0
$
23.5 $
69.7 $
24.8 $
22.9
$
23.3 $
69.3 $
24.7 $
22.8
$
22.1 $
66.1 $
23.5 $
22.0
$
15.4 $
50.1 $
17.4 $
17.7
$
14.4 $
47.5 $
16.4 $
17.0
$
13.3 $
45.0 $
15.5 $
16.4
$
11.1 $
39.6 $
13.5 $
14.9
$
10.2 $
37.6 $
12.7 $
14.4
$
8.3 $
32.9 $
11.0 $
13.1
$
5.8 $
26.7 $
8.6 $
11.5
$
3.9 $
22.1 $
6.9 $
10.3
$
3.2 $
20.6 $
6.3 $
9.9
$
25.4 $
74.4 $
26.6 $
24.1
$
20.4 $
62.0 $
21.9 $
20.9
$
19.3 $
59.4 $
20.9 $
20.2
$
16.6 $
52.9 $
18.5 $
18.4
$
7.7 $
31.4 $
10.4 $
12.8
$
3.9 $
22.1 $
6.9 $
10.3
$
1.6 $
16.7 $
4.8 $
8.8
$
1.6 $
16.7 $
4.8 $
8.8
$
1.1 $
15.3 $
4.3 $
8.5
$
$
12.7 $
3.4 $
7.8
$
53.1 $
141.4 $
51.8 $
41.9
$
32.3 $
91.0 $
32.8 $
28.5
$
30.8 $
87.4 $
31.5 $
27.6
$
15.8 $
50.8 $
17.7 $
17.9
$
10.4 $
37.9 $
12.8 $
14.5
$
10.0 $
37.0 $
12.5 $
14.2
$
6.2 $
27.7 $
9.0 $
11.8
$
5.7 $
26.6 $
8.6 $
11.5
$
5.0 $
24.9 $
7.9 $
11.0
$
4.6 $
23.9 $
7.6 $
10.8
$
4.0 $
22.4 $
7.0 $
10.4
$
3.5 $
21.1 $
6.5 $
10.0
$
3.0 $
20.0 $
6.1 $
9.7
$
2.9 $
19.6 $
6.0 $
9.6
$
2.8 $
19.5 $
5.9 $
9.6
$
2.7 $
19.3 $
5.8 $
9.5
$
2.4 $
18.5 $
5.5 $
9.3
$
2.0 $
17.6 $
5.2 $
9.1
$
2.0 $
17.4 $
5.1 $
9.0
$
1.6 $
16.7 $
4.8 $
8.8
$
1.4 $
16.1 $
4.6 $
8.7
$
1.2 $
15.5 $
4.4 $
8.5
$
1.1 $
13.3 $
4.3 $
8.5
$
1.1 $
15.3 $
4.3 $
8.5
$
0.7 $
14.4 $
4.0 $
8.2
$
0.6 $
14.0 $
3.8 $
8.1
$
0.3 $
13.5 $
3.6 $
8.0

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

Negative
26.4
23.8
21.1
19.8
33.0
40.9
15.8
22.4
19.8
9.2
25.1
7.9
10.6
15.8
39.6
14.5
39.6
15.8
17.2
29.0
23.8
10.6
25.1
15.8
13.2
25.1
29.0
23.8
27.7
27.7
22.4
33.0
23.8
23.8
19.8
18.5
68.5
18.5
23.8
19.8
10.6
26.4
23.8
18.5
19.8
22.4
44.8
13.2
18.5
21.1
18.5

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

8.8
8.8
6.6
2.2
11.0
8.8
3.3
27.5
49.4
11.0
14.3
11.0
14.3
16.5
14.3
12.1
13.2
4.4
54.9
8.8
60.4
16.5
22.0
13.2
20.9
4.4
15.4
9.9
11.0
18.7
19.8
14.3
5.5
4.4
14.3
8.8
5.5
24.2
22.0
22.0
19.8
18.7
18.7
19.8
20.9
13.2
12.1
7.7

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

0.1
0.1
0.1
0.1
31.9
22.1
10.8
6.9
6.6
6.2
1.8
1.2
0.8
0.4
115.9
38.9
23.2
11.1
7.1
5.4
5.3
4.6
2.7
2.5
2.0
1.7
1.3
0.8
0.1
0.1
56.0
37.3
30.9
27.2
14.3
8.1
6.9
3.6
3.6
3.1
3.1

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

12.9
12.9
12.9
12.9
12.7
12.7
12.7
90.0
66.3
38.9
29.4
28.6
27.7
17.2
15.5
14.8
13.7
12.7
293.7
107.0
68.9
39.6
29.9
25.8
25.4
23.9
19.3
18.9
17.4
16.8
15.7
14.6
13.1
12.9
12.7
12.7
12.7
148.5
103.1
87.8
78.6
47.3
32.3
29.5
21.5
21.3
20.2
20.2

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

3.4
3.4
3.4
3.4
3.4
3.4
3.4
32.5
23.5
13.2
9.6
9.3
9.0
5.0
4.4
4.1
3.7
3.4
109.2
38.9
24.5
13.5
9.8
8.3
8.1
7.6
5.8
5.7
5.1
4.9
4.5
4.1
3.5
3.4
3.4
3.4
3.4
54.5
37.4
31.6
28.2
18.4
10.7
9.7
6.7
6.6
6.2
6.2

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

7.8
7.8
7.8
7.8
7.8
7.8
7.8
28.3
22.0
14.7
12.2
12.0
11.8
9.0
8.5
8.3
8.0
7.8
82.3
32.8
22.7
14.9
12.4
11.3
11.2
10.8
9.5
9.4
9.0
8.9
8.6
8.3
7.9
7.8
7.8
7.8
7.8
43.8
31.8
27.7
25.3
17.0
13.0
12.3
10.1
10.1
9.8
9.8

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

10.6
10.6
7.9
2.6
13.2
10.6
4.0
33.0
59.3
13.2
17.2
13.2
17.2
19.8
17.2
14.5
15.8
5.3
65.9
10.6
72.5
19.8
26.4
15.8
25.1
5.3
18.5
11.9
13.2
22.4
23.8
17.2
6.6
5.3
17.2
10.6
6.6
29.0
26.4
26.4
23.8
22.4
22.4
23.8
25.1
15.8
14.5
9.2

17.7

10.4

37.9

12.9

14.5

21.2

Arundel Partners
Exhibit 7 (amounts in millions of nominal dollars)
Assumptions
Semiannual inflation rate
Semiannual discount rate

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47

1.50%
6%

Film
Studio
Parenthood
MCA Universal
Born on the Fourth of July
MCA Universal
Field of Dreams
MCA Universal
Uncle Buck
MCA Universal
Sea of Love
MCA Universal
Always
MCA Universal
K-9
MCA Universal
The Burbs
MCA Universal
The Dream Team
MCA Universal
Do the Right Thing
MCA Universal
Dad
MCA Universal
Shocker
MCA Universal
The Wizard
MCA Universal
Renegades
MCA Universal
Harlem Nights
Paramount
Pet Sematary
Paramount
Black Rain
Paramount
Major League
Paramount
Cousins
Paramount
We're No Angels
Paramount
Let it Ride
Paramount
Shirley Valentine
Paramount
Fat Man and Little Boy
Paramount
The Experts
Paramount
Look Who's Talking
Sony
When Harry Met Sally
Sony
Steel Magnolias
Sony
See No Evil; Hear No Evil
Sony
The Bear
Sony
Glory
Sony
Look Up
Sony
Casualties of War
Sony
Chances Are
Sony
Family Business
Sony
She's Out of Control
Sony
Who's Harry Crumb?
Sony
Adventures of Baron Munchausen
Sony
True Believer
Sony
Troop Beverly Hills
Sony
Tap
Sony
Deepstar Six
Sony
Johnny Handsome
Sony
Music Box
Sony
Immediate Family
Sony
Listen to Me
Sony
Physical Evidence
Sony
Old Gringo
Sony

First Film
Net Inflows Negative Cost
PV Yr 1
PV Yr 0
$
100.10 $
21.53
$
74.50 $
19.38
$
59.10 $
17.23
$
60.00 $
16.15
$
53.50 $
26.92
$
34.30 $
33.38
$
37.80 $
12.92
$
32.20 $
18.30
$
28.40 $
16.15
$
30.00 $
7.54
$
17.70 $
20.46
$
14.30 $
6.46
$
12.70 $
8.61
$
6.90 $
12.92
$
55.40 $
32.30
$
52.60 $
11.84
$
44.10 $
32.30
$
40.30 $
12.92
$
21.10 $
14.00
$
2.10 $
23.69
$
3.60 $
19.38
$
8.90 $
8.61
$
3.30 $
20.46
$
8.20 $
12.92
$
142.30 $
10.77
$
83.30 $
20.46
$
80.40 $
23.69
$
40.50 $
19.38
$
22.40 $
22.61
$
29.30 $
22.61
$
14.10 $
18.30
$
11.40 $
26.92
$
10.80 $
19.38
$
8.30 $
19.38
$
10.50 $
16.15
$
7.60 $
15.07
$
11.60 $
55.89
$
5.80 $
15.07
$
6.90 $
19.38
$
6.70 $
16.15
$
7.10 $
8.61
$
6.00 $
21.53
$
7.10 $
19.38
$
2.20 $
15.07
$
1.60 $
16.15
$
3.60 $
18.30
$
6.00 $
36.51

One-year
Return
3.65
2.84
2.43
2.72
0.99
0.03
1.93
0.76
0.76
2.98
(0.13)
1.21
0.47
(0.47)
0.72
3.44
0.37
2.12
0.51
(0.91)
(0.81)
0.03
(0.84)
(0.37)
12.22
3.07
2.39
1.09
(0.01)
0.30
(0.23)
(0.58)
(0.44)
(0.57)
(0.35)
(0.50)
(0.79)
(0.62)
(0.64)
(0.59)
(0.18)
(0.72)
(0.63)
(0.85)
(0.90)
(0.80)
(0.84)

Hypothetical Sequel
Net Inflows
PV Yr 4
$
76.80
$
56.80
$
47.30
$
47.00
$
44.40
$
31.40
$
29.30
$
27.30
$
22.90
$
21.20
$
17.40
$
12.40
$
8.70
$
7.40
$
51.10
$
41.10
$
39.00
$
33.70
$
16.20
$
8.70
$
4.30
$
4.30
$
3.20
$
1.10
$
105.50
$
64.40
$
61.70
$
32.00
$
21.50
$
20.80
$
13.20
$
12.30
$
10.90
$
10.20
$
9.00
$
7.90
$
7.00
$
6.70
$
6.50
$
6.40
$
5.80
$
5.00
$
4.90
$
4.30
$
3.80
$
3.40
$
3.20

48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99

Loverboy
Sony
Sing
Sony
Winter People
Sony
Welcome Home
Sony
Adventures of Milo and Otis
Sony
The Big Picture
Sony
Slaves of New York
Sony
Eat a Bowl of Tea
Sony
To Kill a Priest
Sony
Me and Him
Sony
Bloodhounds of Broadway
Sony
The War of the Roses
20th Century Fox
The Abyss
21st Century Fox
Weekend at Bernie's
22nd Century Fox
Say Anything
23rd Century Fox
Skin Deep
24th Century Fox
The Fabulous Baker Boys
25th Century Fox
Millenium
26th Century Fox
Worth Winning
27th Century Fox
Gleaming the Cube
28th Century Fox
How I Got Into College
29th Century Fox
When the Whales Came
30th Century Fox
Batman
Warner Bros
Driving Miss Daisy
Warner Bros
Tango & Cash
Warner Bros
Lean on Me
Warner Bros
Her Alibi
Warner Bros
Next of Kin
Warner Bros
Pink Cadillac
Warner Bros
Young Einstein
Warner Bros
Dead-Bang
Warner Bros
Dead Calm
Warner Bros
Second Sight
Warner Bros
See You in the Morning
Warner Bros
In Country
Warner Bros
Cookie
Warner Bros
How to Get Ahead in Advertising Warner Bros
Powwow Highway
Warner Bros
Bert Rigby, You're a Fool
Warner Bros
Penn & Teller Get Killed
Warner Bros
Checking Out
Warner Bros
Honey, I Shrunk the Kids
Walt Disney
Dead Poets Society
Walt Disney
The Little Mermaid
Walt Disney
Turner & Hooch
Walt Disney
Three Fugitives
Walt Disney
An Innocent Man
Walt Disney
Blaze
Walt Disney
New York Stories
Walt Disney
Gross Anatomy
Walt Disney
Disorganized Crime
Walt Disney
Cheetah
Walt Disney

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

2.00
2.20
4.40
5.10
3.10
8.40
7.80
8.40
8.20
8.20
8.20
80.80
48.40
30.20
17.50
16.60
14.10
8.20
2.20
5.30
1.30
7.50
311.50
101.20
48.90
29.80
16.80
13.20
10.10
13.60
6.70
7.60
5.80
5.10
3.80
6.40
8.60
8.40
7.50
8.20
8.20
145.50
92.50
78.10
71.20
36.30
19.70
15.00
10.70
7.80
7.80
9.20

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

10.77
15.07
17.23
15.07
8.61
8.61
6.46
2.15
10.77
8.61
3.23
26.92
48.35
10.77
14.00
10.77
14.00
16.15
14.00
11.84
12.92
4.31
53.73
8.61
59.12
16.15
21.53
12.92
20.46
4.31
15.07
9.69
10.77
18.30
19.38
14.00
5.38
4.31
14.00
8.61
5.38
23.69
21.53
21.53
19.38
18.30
18.30
19.38
20.46
12.92
11.84
7.54

(0.81)
(0.85)
(0.74)
(0.66)
(0.64)
(0.02)
0.21
2.90
(0.24)
(0.05)
1.54
2.00
0.00
1.80
0.25
0.54
0.01
(0.49)
(0.84)
(0.55)
(0.90)
0.74
4.80
10.75
(0.17)
0.85
(0.22)
0.02
(0.51)
2.16
(0.56)
(0.22)
(0.46)
(0.72)
(0.80)
(0.54)
0.60
0.95
(0.46)
(0.05)
0.52
5.14
3.30
2.63
2.67
0.98
0.08
(0.23)
(0.48)
(0.40)
(0.34)
0.22

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

3.20
2.40
2.10
1.70
1.20
1.20
1.20
1.20
1.10
1.10
1.10
63.80
44.60
22.30
14.60
14.00
13.20
4.70
3.40
2.70
1.80
1.10
229.10
77.60
46.70
22.90
15.00
11.70
11.40
10.20
6.40
6.10
4.90
4.40
3.50
2.60
1.40
1.20
1.10
1.10
1.10
111.20
74.40
62.00
54.60
29.10
17.00
14.70
8.20
8.10
7.10
7.10

All Film Average

First Quartile
Median
Third Quartile

$
$
$
$

27.68
7.00
10.50
33.25

$
$
$
$

17.28
10.77
16.15
20.46

0.67
(0.55)
(0.02)
0.99

$
$
$
$

21.57
3.45
8.70
28.20

Standard Deviation
Interquartile range

$
$

41.62
26.25

$
$

10.17
9.69

2.08
1.54

$
$

31.70
24.75

Hypothetical Sequel
Negative Cost One-year
PV Yr 3
Return
$
28.25
1.72
$
25.43
1.23
$
22.60
1.09
$
21.19
1.22
$
35.32
0.26
$
43.79
(0.28)
$
16.95
0.73
$
24.02
0.14
$
21.19
0.08
$
9.89
1.14
$
26.84
(0.35)
$
8.48
0.46
$
11.30
(0.23)
$
16.95
(0.56)
$
42.38
0.21
$
15.54
1.64
$
42.38
(0.08)
$
16.95
0.99
$
18.37
(0.12)
$
31.08
(0.72)
$
25.43
(0.83)
$
11.30
(0.62)
$
26.84
(0.88)
$
16.95
(0.94)
$
14.13
6.47
$
26.84
1.40
$
31.08
0.99
$
25.43
0.26
$
29.67
(0.28)
$
29.67
(0.30)
$
24.02
(0.45)
$
35.32
(0.65)
$
25.43
(0.57)
$
25.43
(0.60)
$
21.19
(0.58)
$
19.78
(0.60)
$
73.33
(0.90)
$
19.78
(0.66)
$
25.43
(0.74)
$
21.19
(0.70)
$
11.30
(0.49)
$
28.25
(0.82)
$
25.43
(0.81)
$
19.78
(0.78)
$
21.19
(0.82)
$
24.02
(0.86)
$
47.90
(0.93)

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

14.13
19.78
22.60
19.78
11.30
11.30
8.48
2.83
14.13
11.30
4.24
35.32
63.44
14.13
18.37
14.13
18.37
21.19
18.37
15.54
16.95
5.65
70.51
11.30
77.57
21.19
28.25
16.95
26.84
5.65
19.78
12.71
14.13
24.02
25.43
18.37
7.06
5.65
18.37
11.30
7.06
31.08
28.25
28.25
25.43
24.02
24.02
25.43
26.84
16.95
15.54
9.89

(0.77)
(0.88)
(0.91)
(0.91)
(0.89)
(0.89)
(0.86)
(0.58)
(0.92)
(0.90)
(0.74)
0.81
(0.30)
0.58
(0.21)
(0.01)
(0.28)
(0.78)
(0.81)
(0.83)
(0.89)
(0.81)
2.25
5.87
(0.40)
0.08
(0.47)
(0.31)
(0.58)
0.81
(0.68)
(0.52)
(0.65)
(0.82)
(0.86)
(0.86)
(0.80)
(0.79)
(0.94)
(0.90)
(0.84)
2.58
1.63
1.19
1.15
0.21
(0.29)
(0.42)
(0.69)
(0.52)
(0.54)
(0.28)

$
$
$
$

22.67
14.13
21.19
26.84

(0.08)
(0.81)
(0.54)
0.17

$
$

13.35
12.71

1.21
0.98