Negotiate the terms of a new contract

Assignment Help Finance Basics
Reference no: EM132396850

An MLB player is in contract negotiations. The current contract is as follows:

Year                                         Salary

0 $8,000,000 (Signing Bonus)

1 $4,000,000

2 $4,800,000

3 $5,700,000

4 $6,400,000

5 $7,000,000

6 $7,500,000

Assume the payments are at the end of the year. Interest rate is 8%.

The player has asked you as his agent to negotiate the terms of a new contract:

1. He wants a contract increase of $750,000 over the previous contract.

2. He wants the new 6-year contract paid out in the following way: A $9 million signing bonus payable today and an equal salary paid every three months (quarterly) with the first paycheque three months from now.

Assuming the team agrees to his new demands, if the interest rate is 8% annually what is the amount of his quarterly payment?

 

Reference no: EM132396850

Questions Cloud

Strategic Management and Leadership Assignment Problem : Strategic Management and Leadership - Research Report Assignment Help and Solution. Berlin School of Business and Innovation, Germany
What is person expected loss : This person has a 10% chance of getting an illness that would result in the total loss of a year's income. What is this person's expected loss?
Premium adding net loading costs : A group of 10 people seek out an insurance company to underwrite health insurance for its members. If expected medical spending for the group is $50,000
Find the supply equation : Find the supply equation (giving price as a function of quantity), assuming that price p and quantity q are linearly related
Negotiate the terms of a new contract : An MLB player is in contract negotiations. The current contract is as follows:
Determine/calculate the zero-rate yield curve : Book- Options, Futures and other Derivatives by John C Hull. Chapter 4- Interest Rates.
What is an employee stock option : 1) What is an employee stock option? 2) What are the major risks a start-up company faces?
Gill bates graduated from university six years : Gill Bates graduated from university six years ago with an undergraduate degree in finance. Although he is satisfied with his current job, his goal is to become
Expected annual average rate of appreciation : Approximate the expected annual average rate of appreciation on home equity for the next three years.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd