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Use BSL's Actual Financial Data for 2010 and Its Projections

Question 6

Multiple Choice

Use BSL's actual financial data for 2010 and its projections for 2011 to 2015 as shown above.Estimate BSL's value (in $ millions) at the end of 2010 assuming it is worth the book value of its assets at the end of 2015.The WACC of the acquiring firm (Macklemore) 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.


A) $628.24
B) $3,669.01
C) $4,297.80
D) $4,412.94
E) $4,984.28

Correct Answer:

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