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According to the Exhibit 4, based on 14 pairs of first films and their first sequels, average sequel negative cost as a percentage of first film negative cost was 120%. Also according to the same exhibit based on 61 pairs of first films and their first sequels average sequel rental revenue as a percentage of first film rental revenue was 70%.
If we assume that Exhibit 7 represents “the universe” of films available for analysis then data from Exhibit 8 can be used to calculate what percentage of movies has been followed by a profitable sequel. According to the said exhibit 26 sequels achieved one-year return of 0...
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