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

Use BSL's actual financial data for 2010 and its projections for 2011 to 2015 as shown above.Assume that in the years after 2015 the company's free cash flow grows 4 percent per year in perpetuity.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.What is the maximum acquisition price (in $ millions) Macklemore should pay to acquire BSL's equity at the end of 2010?

A) $1,976.49
B) $2,501.49
C) $2,877.49
D) $4,195.49
E) $4,571.49