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

Question 25

Multiple Choice

Use BSL's actual financial data for 2010 and its projections for 2011 to 2015 as shown above.Estimate the present value of BSL's free cash flow (in $ millions) for the years 2011 to 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) -$1.29
B) $628.79
C) $720.58
D) $726.68
E) $743.94

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