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

Question 13

Multiple Choice

Estimate BSL's value (in $ millions) at the end of 2010 assuming that at year-end 2015 the company's equity is worth 15 times earnings after tax and its debt is worth book value.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) $628.24
B) $3,669.01
C) $7,429.74
D) $6,343.26
E) $6,755.83
F) None of the above.

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