Apparently Bill Clinton was paid $15 million to write his book My Life. The book took three
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Apparently Bill Clinton was paid $15 million to write his book My Life. The book took three years to write. In the time he spent ... writing, Clinton could have been paid to give speeches. Given his? popularity, suppose he could earn $8.6 a year? (paid at the end of the? year) speaking instead of writing. Suppose his cost of capital is 9.3% per year.
a. What is the GO of agreeing to write the book? (without taking into account royalties payments)?
b. Suppose that, once the book is finished, he is expected to generate royalties of $4.9 million in the first year? (paid at the end of the year) and these rights are expected to decline at a rate of 30%30% per year in perpetuity. What is the GO of the book with the canon payments?
a. What is the GO of agreeing to write the book? (without taking into account royalties payments)?
b. Suppose that, once the book is finished, he is expected to generate royalties of $4.9 million in the first year? (paid at the end of the year) and these rights are expected to decline at a rate of 30%30% per year in perpetuity. What is the GO of the book with the canon payments?
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