Calculate the owners gain from this concession

Assignment Help Financial Management

Reference no: EM132068152

The Levitt report shows NHL revenues at 2.094 billion in 1998, throughout the lockout, the owners claimed that players were receiving 75% of the revenue. When the new CBA settled, players revenue was reduced to 54%.

(a) The new contract lasted 6 years long. Using the information above and assuming an interest rate of 5%, calculate the owner's gain from this concession.

(b) Assume the owners' loss in a season was 335 million, and assume costs of fan irritation from the lockout is equal to owners' next best alternative, calculate the owners' break-even probability. Explain your results.

Reference no: EM132068152

Questions Cloud

Find by graphical linear programming the best production : Find by graphical linear programming the best production mix of yard gates. Please formulate this problem.

How many payments will you have made in given case : You're prepared to make monthly payments of $350, beginning at the end of this month, into an account that pays 6 percent interest compounded monthly.

What is most that rational investor would be willing to pay : What is the most that a rational investor would be willing to pay for the following bond: face value = $5,000; annual coupon rate = 12 percent.

Derive the differential equations : Derive the differential equations to describe the device dynamics - find at least two applications of the electro-mechanical system above.

Calculate the owners gain from this concession : The new contract lasted 6 years long. Using the information above and assuming an interest rate of 5%, calculate the owner's gain from this concession.

Which alternative should be selected and why : The rates of return on alternatives X and Y are 15% and 20%, respectively. Alternative Y requires a larger investment than alternative X.

What are the investment weights needed for the two bonds : As an alternative, you want to consider immunizing the liability using 8-year and 30-year zero coupon-bonds.

Calculate the market premium : The rate of return for bonds issued by the Australian Commonwealth Government Treasury is given as 2% per annum. The return for the Australian share market.

What is the capital gain for the stock : You're analyzing the stock of a certain company. The most recent dividend paid was $7 dollars per share. The company's discount rate is 12%.

User Account

All Pages