Exhibit 6 Estimated Revenues and Costs for Films Released in 1989 by Six Major Studios and Hypothetical Sequels

ls a (in millions of 1991 $)

First Film Hypotheti

NPV of
U.S. Distributi First U.S.
Theater Other Distributi on Negative Film(12% NPV at Theater
Studio/Movie Title Rentals Revenue on Fees Expense Cost NPV at 9% ) 15% Rentals

MCA UNIVERSAL
1 PARENTHOOD $55.0 $146.1 $53.6 $43.1 $22.0 $65.8 $60.85 $56.17 $38.5
2 BORN ON THE FOURTH OF JULY 40.5 110.9 40.3 33.1 19.8 $45.7 $38.45 $38.45 28.4
3 FIELD OF DREAMS 33.6 94.1 34.0 31.6 17.6 $34.0 $44.50 $27.84 23.5
4 UNCLE BUCK 33.3 93.6 33.8 30.2 16.5 $35.9 $46.40 $29.85 23.3
5 SEA OF LOVE 31.5 89.0 32.1 32.0 27.5 $19.0 $28.90 $13.18 22.0
6 ALWAYS 22.0 66.1 23.4 28.0 34.1 -$4.7 $2.60 -$8.89 15.4
7 K-9 20.5 62.3 22.0 20.9 13.2 $19.9 $26.70 $15.90 14.3
8 THE ‘BURBS 19.0 58.9 20.7 22.9 18.7 $9.2 $15.60 $5.44 13.3
9 THE DREAM TEAM 15.8 51.1 17.8 19.0 16.5 $8.1 $13.60 $4.87 11.1
10 DO THE RIGHT THING 14.6 48.2 16.7 14.6 7.7 $18.6 $23.80 $15.61 10.2
11 DAD 11.9 41.5 14.2 20.0 20.9 -$6.1 -$1.70 -$8.67 8.3
12 SHOCKER 8.3 32.7 10.9 14.6 6.6 $5.5 $8.90 $3.55 5.8
13 THE WIZARD 5.5 26.1 8.4 9.5 8.8 $2.3 $4.90 $0.78 3.9
14 RENEGADES 4.6 23.9 7.6 13.1 13.2 -$7.8 -$5.40 -$9.12 3.2
$0.0 $0.00
PARAMOUNT PICTURES $0.0 $0.00
15 HARLEM NIGHTS $36.3 $100.8 $36.5 $41.7 $33.0 $14.6 $25.90 $8.02 $25.4
16 PET SEMATARY 29.1 83.2 29.9 27.1 12.1 $33.9 $43.20 $28.55 20.3
17 BLACK RAIN 27.5 79.4 28.5 31.6 33.0 $5.0 $13.80 -$0.14 19.3
18 MAJOR LEAGUE 23.7 70.1 25.0 26.1 13.2 $21.8 $29.50 $17.27 16.6
19 COUSINS 11.0 39.4 13.4 14.4 14.3 $4.1 $8.30 $1.73 7.7
20 WE’RE NO ANGELS 5.5 26.1 8.4 19.9 24.2 -$23.5 -$20.90 -$25.02 3.9
21 LET IT RIDE 2.3 18.3 5.5 10.8 19.8 -$17.2 -$15.50 -$18.19 1.6
22 SHIRLEY VALENTINE 2.3 18.3 5.5 5.6 8.8 -$1.0 $0.70 -$1.99 1.6
23 FAT MAN AND LITTLE BOY 1.5 16.5 4.8 9.2 20.9 -$18.4 -$16.90 -$19.25 1.1
24 THE EXPERTS 0.0 12.7 3.4 0.8 13.2 -$5.7 -$4.70 -$6.36 0.0
$0.0 $0.00
SONY PICTURES ENTERTAINMENTb $0.0 $0.00
25 LOOK WHO’S TALKING (TS) $75.8 $196.5 $72.6 $51.7 $11.0 $114.5 $137.00 $101.48 $53.1
26 WHEN HARRY MET SALLY (C) 46.1 124.5 45.4 38.1 20.9 $52.1 $66.20 $43.95 32.3
27 STEEL MAGNOLIAS (TS) 44.0 119.4 43.5 35.9 24.2 $46.3 $59.80 $38.49 30.8
28 SEE NO EVIL; HEAR NO EVIL (TS) 22.5 67.1 23.8 23.1 19.8 $15.5 $22.90 $11.21 15.7
29 THE BEAR (TS) 14.9 48.7 16.9 22.5 23.1 -$4.2 $1.10 -$7.20 10.4
30 GLORY (TS) 14.3 47.4 16.4 14.5 23.1 $2.6 $7.70 -$0.35 10.0
31 LOOK UP (TS) 8.8 34.1 11.4 16.1 18.7 -$6.8 -$3.30 -$8.90 6.2
32 CASUALTIES OF WAR (C) 8.1 32.5 10.8 17.1 27.5 -$18.2 -$14.80 -$20.10 5.7
33 CHANCES ARE (TS) 7.2 30.1 9.9 15.4 19.8 -$10.9 -$7.80 -$12.67 5.0
34 FAMILY BUSINESS (TS) 6.6 28.7 9.4 16.5 19.8 -$13.3 -$10.40 -$15.00 4.6
35 SHE’S OUT OF CONTROL (C) 5.7 26.6 8.6 12.2 16.5 -$7.7 -$5.00 -$9.21 4.0
36 WHO’S HARRY CRUMB? (TS) 5.0 24.7 7.9 13.2 15.4 -$9.3 -$6.80 -$10.67 3.5
37 ADVENTURES OF BARON
MUNCHAUSEN (C) 4.3 23.1 7.3 7.8 57.1 -$47.1 -$44.80 -$48.37 3.0
38 TRUE BELIEVER (C) 4.1 22.6 7.1 12.8 15.4 -$10.8 -$8.60 -$12.08 2.9
39 TROOP BEVERLY HILLS (C) 4.0 22.3 7.0 11.5 19.8 -$14.2 -$12.00 -$15.43 2.8
40 TAP (TS) 3.9 22.1 6.9 11.4 16.5 -$10.9 -$8.80 -$12.19 2.7
41 DEEPSTAR SIX (TS) 3.4 21.0 6.5 10.0 8.8 -$2.9 -$0.90 -$4.08 2.4
42 JOHNNY HANDSOME (TS) 2.9 19.7 6.0 9.7 22.0 -$17.0 -$15.10 -$18.05 2.0
43 MUSIC BOX (TS) 2.8 19.4 5.9 8.4 19.8 -$13.7 -$11.90 -$14.80 1.9
44 IMMEDIATE FAMILY (C) 2.3 18.3 5.5 12.1 15.4 -$14.1 -$12.40 -$15.09 1.6
45 LISTEN TO ME (C) 2.0 17.5 5.2 12.0 16.5 -$15.8 -$14.20 -$16.74 1.4
46 PHYSICAL EVIDENCE (C) 1.7 16.7 4.9 9.2 18.7 -$15.9 -$14.40 -$16.80 1.2
47 OLD GRINGO (C) 1.5 16.5 4.8 6.6 37.3 -$32.2 -$30.70 -$33.05 1.1
48 LOVERBOY (TS) 1.5 16.5 4.8 10.5 11.0 -$9.8 -$8.30 -$10.65 1.1
49 SING (TS) 1.0 15.1 4.3 9.0 15.4 -$13.9 -$12.60 -$14.70 0.7
50 WINTER PEOPLE (C) 0.8 14.6 4.1 6.3 17.6 -$13.9 -$12.60 -$14.61 0.5
51 WELCOME HOME (C) 0.4 13.8 3.8 4.9 15.4 -$11.1 -$9.90 -$11.75 0.3
52 ADVENTURES OF MILO AND OTIS (C) 0.1 13.0 3.5 6.0 8.8 -$6.3 -$5.20 -$6.91 0.1
53 THE BIG PICTURE (C) 0.1 13.0 3.5 0.8 8.8 -$1.1 $0.00 -$1.71 0.1
54 SLAVES OF NEW YORK (TS) 0.1 13.0 3.5 1.5 6.6 $0.4 $1.50 -$0.21 0.1
55 EAT A BOWL OF TEA (C) $0.1 $13.0 $3.5 $0.8 $2.2 $5.5 $6.60 $4.89 $0.1
56 TO KILL A PRIEST (C) 0.0 12.7 3.4 0.8 11.0 -$3.5 -$2.50 -$4.16 0.0
57 ME AND HIM (C) 0.0 12.7 3.4 0.8 8.8 -$1.3 -$0.30 -$1.96 0.0
58 BLOODHOUNDS OF BROADWAY (C) 0.0 12.7 3.4 0.8 3.3 $4.2 $5.20 $3.54 0.0
$0.0 $0.00
TWENTIETH CENTURY FOX $0.0 $0.00
59 THE WAR OF THE ROSES $45.6 $123.2 $44.9 $39.1 $27.5 $43.4 $57.30 $35.28 $31.9
60 THE ABYSS 31.6 89.3 32.2 37.2 49.4 -$7.9 $2.10 -$13.67 22.1
61 WEEKEND AT BERNIE’S 15.4 50.1 17.4 16.3 11.0 $15.4 $20.80 $12.26 10.8
62 SAY ANYTHING 9.8 36.5 12.3 15.2 14.3 $0.7 $4.50 -$1.54 6.9
63 SKIN DEEP 9.4 35.4 11.9 15.0 11.0 $3.2 $6.90 $1.06 6.5
64 THE FABULOUS BAKER BOYS 8.8 34.1 11.4 16.1 14.3 -$2.4 $1.10 -$4.50 6.2
65 MILLENNIUM 2.6 19.1 5.8 7.1 16.5 -$9.5 -$7.70 -$10.53 1.8
66 WORTH WINNING 1.7 16.7 4.9 10.5 14.3 -$12.8 -$11.30 -$13.70 1.2
67 GLEAMING THE CUBE 1.2 15.7 4.5 6.5 12.1 -$7.6 -$6.20 -$8.40 0.8
68 HOW I GOT INTO COLLEGE 0.6 14.1 3.9 8.8 13.2 -$12.4 -$11.20 -$13.12 0.4
69 WHEN THE WHALES CAME 0.0 12.7 3.4 1.4 4.4 $2.5 $3.50 $1.84 0.0
$0.0 $0.00
WARNER BROTHERS $0.0 $0.00
70 BATMAN $165.6 $414.2 $154.5 $102.0 $54.9 $220.5 $268.40 $192.77 $115.9
71 DRIVING MISS DAISY 55.6 147.4 54.1 43.3 8.8 $80.0 $96.80 $70.32 38.9
72 TANGO & CASH 33.1 93.0 33.6 40.4 60.4 -$18.7 -$8.30 -$24.75 23.2
73 LEAN ON ME 15.8 51.1 17.8 17.7 16.5 $9.4 $14.90 $6.17 11.1
74 HER ALIBI 10.1 37.3 12.6 16.6 22.0 -$7.7 -$3.80 -$9.98 7.1
75 NEXT OF KIN 7.7 31.4 10.4 14.3 13.2 -$2.0 $1.20 -$3.90 5.4
76 PINK CADILLAC 7.5 30.9 10.2 16.8 20.9 -$12.7 -$9.50 -$14.51 5.2
77 YOUNG EINSTEIN 6.6 28.7 9.4 11.3 4.4 $7.3 $10.20 $5.60 4.6
78 DEAD-BANG 3.9 22.1 6.9 11.4 15.4 -$9.8 -$7.70 -$11.09 2.7
79 DEAD CALM 3.6 21.5 6.7 10.1 9.9 -$3.7 -$1.60 -$4.87 2.5
80 SECOND SIGHT 2.8 19.4 5.9 9.7 11.0 -$6.2 -$4.40 -$7.30 1.9
81 SEE YOU IN THE MORNING 2.4 18.6 5.6 9.6 18.7 -$14.6 -$12.90 -$15.64 1.7
82 IN COUNTRY 1.8 17.0 5.0 9.3 19.8 -$16.9 -$15.30 -$17.75 1.2
83 COOKIE 1.1 15.4 4.4 5.1 14.3 -$8.7 -$7.30 -$9.45 0.8
84 HOW TO GET AHEAD IN ADVERTISING 0.2 13.3 3.6 0.9 5.5 $2.4 $3.50 $1.74 0.2
85 POWWOW HIGHWAY 0.1 13.0 3.5 0.8 4.4 $3.3 $4.40 $2.69 0.1
86 BERT RIGBY, YOU’RE A FOOL 0.0 12.7 3.4 1.4 14.3 -$7.4 -$6.40 -$8.06 0.0
87 PENN & TELLER GET KILLED 0.0 12.7 3.4 0.8 8.8 -$1.3 -$0.30 -$1.96 0.0
88 CHECKING OUT 0.0 12.7 3.4 0.8 5.5 $2.0 $3.00 $1.34 0.0
$0.0 $0.00
THE WALT DISNEY COMPANYb $0.0 $0.00
89 HONEY, I SHRUNK THE KIDS (W) $80.0 $206.7 $76.4 $58.6 $24.2 $103.8 $127.50 $90.10 $56.0
90 DEAD POETS SOCIETY (T) 53.3 141.8 52.0 46.2 22.0 $58.8 $74.90 $49.45 37.3
91 THE LITTLE MERMAID (W) 44.2 120.0 43.7 38.6 22.0 $46.3 $59.90 $38.48 31.0
92 TURNER & HOOTCH (T) 38.8 106.9 38.8 32.5 19.8 $42.6 $54.60 $35.60 27.2
93 THREE FUGITIVES (T) 20.4 62.1 21.9 22.2 18.7 $12.9 $19.70 $8.94 14.3
94 AN INNOCENT MAN (T) 11.6 40.7 13.9 17.2 18.7 -$1.8 $2.50 -$4.32 8.1
95 BLAZE (T) 9.9 36.7 12.4 17.8 19.8 -$7.2 -$3.40 -$9.48 6.9
96 NEW YORK STORIES (T) 5.2 25.3 8.1 10.7 20.9 -$11.7 -$9.20 -$13.18 3.6
97 GROSS ANATOMY (T) 5.1 25.0 8.0 13.2 13.2 -$6.8 -$4.30 -$8.23 3.5
98 DISORGANIZED CRIME (T) 4.4 23.4 7.4 11.7 12.1 -$5.7 -$3.40 -$7.03 3.1
99 CHEETAH (W) 4.4 23.4 7.4 10.4 7.7 $0.0 $2.30 -$1.33 3.1
AVERAGES $14.9 $48.8 $16.9 $17.4 $17.6 $6.5 $11.80 $3.49 $10.4

a
Metro-Goldwyn-Mayer and Orion are excluded. Fees assume films were financed by an independent producer. Costs exclude gross participations and interest charges.
b
C=Columbia Pictures; TS=Tri-Star. W=Walt Disney; T=Touchstone.
Sum $11.35
91 $)
9%
Hypothetical Sequel Discount Rate 12%
Distributi NPV of
Other Distributi on Negative NPV at Hypothetical
Revenue on Fees Expense Cost 9% Sequel(12%) NPV at 15% 15%

$106.1 $38.5 $32.6 $26.4 $35.2 $31.61 $28.24

81.4 29.2 26.0 23.7 $21.8 $16.58 $16.58
69.7 24.8 22.9 21.1 $16.7 $24.40 $12.24
69.3 24.7 22.8 19.8 $17.7 $25.30 $13.22
66.1 23.5 22.0 33.0 $2.3 $9.60 -$1.89
50.1 17.4 17.7 40.9 -$15.9 -$10.50 -$19.04
47.5 16.4 17.0 15.8 $7.5 $12.60 $4.54
45.0 15.5 16.4 22.4 -$0.8 $4.00 -$3.60
39.6 13.5 14.9 19.8 -$1.7 $2.50 -$4.11
37.6 12.7 14.4 9.2 $7.6 $11.50 $5.27
32.9 11.0 13.1 25.0 -$11.3 -$7.90 -$13.27
26.7 8.6 11.5 7.9 $1.8 $4.50 $0.26
22.1 6.9 10.3 10.5 -$3.8 -$1.70 -$5.09
20.6 6.3 9.9 15.8 -$10.2 -$8.20 -$11.30
$0.0 $0.00
$0.0 $0.00
$74.4 $26.6 $24.1 $39.5 $1.4 $9.60 -$3.42
62.0 21.9 20.9 14.5 $18.2 $25.00 $14.27
59.4 20.9 20.2 39.5 -$8.4 -$1.90 -$12.17
52.9 18.5 18.4 15.8 $11.1 $16.80 $7.73
31.4 10.4 12.8 17.1 -$4.4 -$1.20 -$6.30
22.1 6.9 10.3 29.0 -$22.3 -$20.20 -$23.59
16.7 4.8 8.8 23.7 -$20.5 -$19.00 -$21.39
16.7 4.8 8.8 10.5 -$7.3 -$5.80 -$8.19
15.3 4.3 8.5 25.0 -$22.8 -$21.40 -$23.54
 12.7 3.4 7.8 15.8 -$15.3 -$14.30 -$15.96
$0.0 $0.00
$0.0 $0.00
$141.4 $51.8 $41.9 $13.2 $71.5 $87.60 $62.23
91.0 32.8 28.5 25.0 $26.8 $37.00 $20.92
87.4 31.5 27.6 29.0 $20.3 $30.10 $14.68
50.8 17.7 17.9 23.7 $1.7 $7.20 -$1.47
37.9 12.8 14.5 27.7 -$10.7 -$6.70 -$13.00
37.0 12.5 14.2 27.7 -$11.3 -$7.40 -$13.53
27.7 9.0 11.8 22.4 -$12.1 -$9.30 -$13.72
26.6 8.6 11.5 33.0 -$23.5 -$20.80 -$25.01
24.9 7.9 11.0 23.7 -$15.2 -$12.70 -$16.60
23.9 7.6 10.8 23.7 -$16.0 -$13.60 -$17.32
22.4 7.0 10.4 19.8 -$13.0 -$10.80 -$14.24
21.1 6.5 10.0 18.5 -$12.4 -$10.40 -$13.61

20.0 6.1 9.7 68.5 -$63.2 -$61.30 -$64.30

19.6 6.0 9.6 18.5 -$13.5 -$11.60 -$14.53
19.5 5.9 9.6 23.7 -$18.7 -$16.90 -$19.81
19.3 5.8 9.5 19.8 -$14.9 -$13.10 -$15.97
18.5 5.5 9.3 10.5 -$6.1 -$4.40 -$7.13
17.6 5.2 9.1 26.4 -$22.7 -$21.10 -$23.66
17.4 5.1 9.0 23.7 -$20.1 -$18.50 -$21.02
16.7 4.8 8.8 18.5 -$15.3 -$13.80 -$16.19
16.1 4.6 8.7 19.8 -$17.0 -$15.60 -$17.88
15.5 4.4 8.5 22.4 -$20.0 -$18.60 -$20.78
15.3 4.3 8.5 44.8 -$42.6 -$41.20 -$43.34
15.3 4.3 8.5 13.2 -$11.0 -$9.60 -$11.74
14.4 4.0 8.2 18.5 -$16.8 -$15.60 -$17.57
14.0 3.8 8.1 21.1 -$19.7 -$18.50 -$20.39
13.5 3.6 8.0 18.5 -$17.4 -$16.30 -$18.10
12.9 3.4 7.8 10.5 -$9.8 -$8.70 -$10.40
 12.9 3.4 7.8 10.5 -$9.8 -$8.70 -$10.40
12.9 3.4 7.8 7.9 -$7.2 -$6.10 -$7.80
$12.9 $3.4 $7.8 $2.6 -$1.9 -$0.80 -$2.50
12.7 3.4 7.8 13.2 -$12.7 -$11.70 -$13.36
12.7 3.4 7.8 10.5 -$10.0 -$9.00 -$10.66
12.7 3.4 7.8 4.0 -$3.5 -$2.50 -$4.16
$0.0 $0.00
$0.0 $0.00
$90.0 $32.5 $28.3 $33.0 $18.0 $28.10 $12.20
66.3 23.5 22.0 59.3 -$23.7 -$16.40 -$27.93
38.9 13.2 14.7 13.2 $4.5 $8.60 $2.12
29.4 9.6 12.2 17.1 -$5.6 -$2.60 -$7.33
28.6 9.3 12.0 13.2 -$2.3 $0.60 -$3.98
27.7 9.0 11.8 17.1 -$6.8 -$4.00 -$8.42
17.2 5.0 9.0 19.8 -$16.4 -$14.80 -$17.28
15.5 4.4 8.5 17.1 -$14.7 -$13.30 -$15.48
14.8 4.1 8.3 14.5 -$12.6 -$11.30 -$13.33
13.7 3.7 8.0 15.8 -$14.6 -$13.40 -$15.24
12.7 3.4 7.8 5.3 -$4.8 -$3.80 -$5.46
$0.0 $0.00
$0.0 $0.00
$293.7 $109.2 $82.3 $65.9 $118.4 $152.20 $98.77
107.0 38.9 32.8 10.5 $51.7 $63.70 $44.67
68.9 24.5 22.7 72.5 -$35.2 -$27.60 -$39.61
39.6 13.5 14.9 19.8 -$1.7 $2.50 -$4.11
29.9 9.8 12.4 26.4 -$14.7 -$11.60 -$16.43
25.8 8.3 11.3 15.8 -$6.8 -$4.20 -$8.27
25.4 8.1 11.2 25.0 -$16.2 -$13.70 -$17.69
23.9 7.6 10.8 5.3 $2.4 $4.80 $1.08
19.3 5.8 9.5 18.5 -$13.6 -$11.80 -$14.67
18.9 5.7 9.4 11.9 -$7.4 -$5.60 -$8.39
17.4 5.1 9.0 13.2 -$9.6 -$8.00 -$10.52
 16.8 4.9 8.9 22.4 -$19.2 -$17.70 -$20.11
15.7 4.5 8.6 23.7 -$21.3 -$19.90 -$22.10
14.6 4.1 8.3 17.1 -$15.4 -$14.10 -$16.11
13.1 3.5 7.9 6.6 -$5.8 -$4.70 -$6.43
12.9 3.4 7.8 5.3 -$4.6 -$3.50 -$5.20
12.7 3.4 7.8 17.1 -$16.6 -$15.60 -$17.26
12.7 3.4 7.8 10.5 -$10.0 -$9.00 -$10.66
12.7 3.4 7.8 6.6 -$6.1 -$5.10 -$6.76
$0.0 $0.00
$0.0 $0.00
$148.5 $54.5 $43.8 $29.0 $60.3 $77.20 $50.53
103.1 37.4 31.8 26.4 $33.2 $44.80 $26.49
87.8 31.6 27.7 26.4 $23.3 $33.10 $17.60
78.6 28.2 25.3 23.7 $19.9 $28.60 $14.80
47.3 16.4 17.0 22.4 $0.7 $5.80 -$2.23
32.3 10.7 13.0 22.4 -$9.0 -$5.70 -$10.97
29.5 9.7 12.3 23.7 -$12.3 -$9.30 -$14.05
21.5 6.7 10.1 25.0 -$18.8 -$16.70 -$19.97
21.3 6.6 10.1 15.8 -$9.7 -$7.70 -$10.93
20.2 6.2 9.8 14.5 -$9.1 -$7.20 -$10.24
20.2 6.2 9.8 9.2 -$3.8 -$1.90 -$4.94
$38.0 $12.9 $14.5 $21.2 -$4.2 -$0.20 -$6.51
Exhibit 7 Estimated Expected Present Values and One-Year Holding
Period Returns Based on Data in Exhibit 6 (in millions of dollars)
Discount Rate= 12%
Hypothetical Sequel

PV of
PV of Net Negative
Inflows at Cost at Year One-Year NPV Year NPV Year
Studio/Movie Title Year 4a 3 Return 3 0
MCA UNIVERSAL
1 PARENTHOOD $76.8 $28.2 1.72 $40.37 $28.70 25.65677 Option
2 BORN ON THE FOURTH OF JULY 56.8 25.4 1.24 $25.31 17.99 16.08769 S0=
3 FIELD OF DREAMS 47.3 22.6 1.1 $19.63 13.97 12.47658 K=
4 UNCLE BUCK 47.0 21.2 1.22 $20.76 14.79 13.19608 V=
5 SEA OF LOVE 44.4 35.3 0.26 $4.34 3.08 T=
7 K-9 29.3 16.9 0.73 $9.26 6.55
8 THE ‘BURBS 27.3 24.0 0.14 $0.38 0.26
10 DO THE RIGHT THING 21.2 9.9 1.15 $9.03 6.43 Option valuation
12 SHOCKER 12.4 8.5 0.47 $2.57 1.85 Time tomaturity (yrs
PARAMOUNT PICTURES Risk free rate
15 HARLEM NIGHTS $51.1 $42.3 0.21 $3.33 2.31 Volatility
16 PET SEMATARY 41.1 15.5 1.65 $21.20 15.06 d1
18 MAJOR LEAGUE 33.7 16.9 0.99 $13.19 9.35 N(d1)
SONY PICTURES ENTERTAINMENTc d2
25 LOOK WHO’S TALKING (TS) $105.5 $14.1 6.48 $80.10 56.99 N(d2)
26 WHEN HARRY MET SALLY (C) 64.6 26.8 1.41 $30.88 21.82 Call value
27 STEEL MAGNOLIAS (TS) 61.7 31.0 0.99 $24.09 17.09
28 SEE NO EVIL; HEAR NO EVIL (TS) 32.0 25.4 0.26 $3.17 2.24
TWENTIETH CENTURY FOX
59 THE WAR OF THE ROSES $63.8 $35.3 0.81 $21.66 15.41
61 WEEKEND AT BERNIE’S 22.3 14.1 0.58 $5.81 4.12
WARNER BROTHERS
70 BATMAN $229.1 $70.5 2.25 $134.05 95.41
71 DRIVING MISS DAISY 77.6 11.3 5.87 $57.99 41.27
77 YOUNG EINSTEIN 10.2 5.6 0.80 $3.51 2.46
THE WALT DISNEY COMPANY
89 HONEY, I SHRUNK THE KIDS (W) 111.2 31 2.58 68.28571 48.55
90 DEAD POETS SOCIETY (T) 74.4 28.2 1.64 $38.23 27.17
91 THE LITTLE MERMAID (W) 62.0 28.2 1.20 $27.16 19.29
92 TURNER & HOOTCH (T) 54.6 25.4 1.15 $23.35 16.59
93 THREE FUGITIVES (T) 29.1 24.0 0.21 $1.98 1.39
Average: $57.2 $24.5 1.43 $26.52 $18.85 40.69467
Median: $49.2 $24.7 1.13 $20.98
Standard deviation: $43.4 $13.0 1.53 $30.23
First Quartile: $29.98 $15.85 0.62 $4.71
Third Quartile: $64.4 $28.2 1.58 $29.9
Interquartile Range: $34.4 $12.4 0.97 $25.2
NPV (26 Profitable $490.14
NPV (73 nonprofitabl 0
Total NPV $490.14
Total # of Films 99
Value Per Film $4.95

a
Net inflows consist of all revenues minus associated distribution fees and expenses.
b
One-year return is defined as: [PV of net inflows minus PV of negative cost] divided by [PV of negative cost].
c
C=Columbia Pictures; TS=Tri-Star. W=Walt Disney; T=Touchstone.
 40.69
24.5
70%
3

3
6.00%
70%
1.173100893088
0.879622325789
-0.03933467221
0.484311781785
25.88
Exhibit 9 Summary Statistics for Samples of Films Released in 1987 and 1988 a (dollar figures in millions)

Table A 1987 Data

First Film Hypothetical Sequel total inflows $63.8

U.S. Distributi U.S. Distributi
Theater Other Distributi on Negative Theater Other Distributi on Negative
Rentals Revenue on Fees Expense Cost Rentals Revenue on Fees Expense Cost
NPV at 3 year
Average (in 1991 $): $21.3 $64.4 $22.8 $21.5 $26.3 $14.9 $48.9 $17.0 $17.4 $31.6

First Film Hypothetical Sequel

PV of PV of
PV of Net Negative PV of Net Negative
Inflows Cost at One-Year Inflows Cost at One-Year
at Year 1 Year 0 Returna at Year 4 Year 3 Returna

Average: $39.4 $25.8 0.71 $30.4 $33.8 0.01

Median: $30.9 $22.3 0.04 $24.0 $29.3 (0.39)
Standard deviation: $38.4 $9.4 2.05 $29.4 $12.3 1.20

Interquartile range: $11.1 $18.8 (0.60) $8.8 $24.6 (0.75)

to to to to to to
$52.1 $29.3 1.22 $40.2 $38.5 0.31

Table B 1988 Data

U.S. First Film Distributi U.S. Hypothetical Sequel

Distributi
Theater Other Distributi on Negative Theater Other Distributi on Negative
Rentals Revenue on Fees Expense Cost Rentals Revenue on Fees Expense Cost

Average (in 1991 $): $19.7 $60.5 $21.3 $20.5 $24.4 $13.8 $46.1 $15.9 $16.7 $29.2

First Film Hypothetical Sequel

 PV of PV of
PV of Net Negative PV of Net Negative
Inflows Cost at One-Year Inflows Cost at One-Year
at Year 1 Year 0 Returna at Year 4 Year 3 Returna
Average: $36.4 $23.8 0.48 $28.2 $31.3 (0.13) $59.9 42.63564
Median: $22.4 $20.3 0.01 $17.5 $26.6 (0.40)
Standard deviation: $38.2 $11.4 1.37 $29.3 $14.9 0.80
Interquartile range: $9.3 $16.9 (0.48) $7.5 $22.2 (0.69)
to to to to to to
$42.1 $24.8 0.93 $32.5 $32.5 0.14

a
One-year return is defined as: [PV of net inflows minus PV of negative cost] divided by [PV of negative cost].
45.411579810496

For 1987 For 1988

Option Valuation Option Valuation
S0= 45.41 S0= 42.63564
K= 33.8 K= 31.3
V= 70% V= 70%
T= 3 T= 3
Time tomaturity (yrs 3 Time tomaturity (y 3
Risk free rate 6.00% Risk free rate 6.00%
Volatility 70% Volatility 70%
d1 0.9982151442 d1 1.009598
N(d1) 0.8409124778 N(d1) 0.843656

d2 -0.2142204211 d2 -0.20284
N(d2) 0.415187586 N(d2) 0.419631
Call value 26.46 Call value 25.00