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Estimate BSL's Value (In $ Millions)at the End of 2010

Question 5

Multiple Choice

Estimate BSL's value (in $ millions) at the end of 2010 assuming that in the years after 2015 the company's free cash flow grows 4 percent per year in perpetuity.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.


A) $4,297.25
B) $4,571.09
C) $4,686.78
D) $6,181.09
E) $5,351.19
F) None of the above.

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