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

question 26

Multiple Choice

Use BSL's actual financial data for 2010 and its projections for 2011 to 2015 as shown above.Assume 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.What is the maximum acquisition price (in $ millions) Macklemore should pay to acquire BSL's equity at the end of 2010?


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Gender Modeling Theory

A theory which suggests that individuals learn gender roles and behaviors by observing and imitating others, and through rewards and punishments for these behaviors.

Moral Development Theory

A theory that focuses on how people learn to decide what is right and wrong, often associated with stages of psychological growth.

Heteronormativity

A cultural bias favoring heterosexual relationships and norms, often marginalizing non-heterosexual relationships and identities.

Homophobia

Fear, hatred, or prejudice against homosexual people.

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