Chapter 09 - Business Valuation and Corporate Restructuring
15. 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.
(NOTE to instructor: for this question, you might choose to include the FCF for 2011 of - $7