2. Conroy Media is a fitness platform, with more than 1 million subscribers on its platform. The company reported an operating loss of $25 million in the most recent year, but that was after expensing $36 million spent on acquiring subscribers during the year. Assume that a subscriber stays on the platform for three years, and that you have the subscriber acquisition costs for the most recent years below: Year Current -1 -2 -3 Subscriber acquisition cost (in millions USD) $36 $27 $21 $14 Estimate the corrected pre-tax operating income for this company, with subscriber acquisitions being treated as the equivalent of capital expenditures.

2. Conroy Media is a fitness platform, with more than 1 million subscribers on its platform. The company reported an operating loss of $25 million in the most recent year, but that was after expensing $36 million spent on acquiring subscribers during the year. Assume that a subscriber stays on the platform for three years, and that you have the subscriber acquisition costs for the most recent years below: Year Current -1 -2 -3 Subscriber acquisition cost (in millions USD) $36 $27 $21 $14 Estimate the corrected pre-tax operating income for this company, with subscriber acquisitions being treated as the equivalent of capital expenditures.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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