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

question 8

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Use BSL's actual financial data for 2010 and its projections for 2011 to 2015 as shown above.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.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.


Definitions:

Summative Evaluation

A type of evaluation that judges the effectiveness of a program, project, or instruction at its conclusion, summarizing its impact.

Measurement

The process of obtaining a quantitative representation of traits, quantities, or phenomena to allow for analysis or comparison.

Outcome Objectives

The specific, measurable results or achievements that a program or intervention aims to accomplish.

Process Evaluation

An assessment of the implementation process of a program or intervention, examining its fidelity and the way it is delivered.

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