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Assume BSL Is Worth the Book Value of Its Assets

Question 20

Multiple Choice

Assume BSL is worth the book value of its assets at the end of 2015.Macklemore's WACC is 8.0 percent.BSL's WACC is 11.5 percent,and the average of the two companies' WACCs,weighted by sales,is 8.2 percent.What is the maximum acquisition price (in $ millions) Macklemore should pay to acquire BSL's equity?


A) $1,702.25
B) $2,227.25
C) $2,342.94
D) $2,383.94
E) $2,603.25
F) None of the above.

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