a) $628.24

b) $3,669.01

c) $4,297.80

d) $4,412.94

e) $4,984.28

f) $6,951.24

g) None of the options are correct.

Save & Exit Saved Help [The following information applies to the questions displayed below.] In March of 2011, Macklemore Corp. considered an acquisition of Blue Scholar Learning, Inc. (BSL), a privately held educational software firm. As a first step in deciding what price to bid for BSL, Macklemore's CFO, Ryan Lewis, has prepared a five-year financial projection for the company assuming the acquisition takes place. Blue Scholar Learning, Inc. (BSL) 5-year Financial Projection ($ millions) Actual 2010 2011 2012 2013 2014 2015 Income Statement. Net sales Cost of sales $ 1,996 $ 2,267 $ 2,508 $ 3,138 $ 3,571 1,241 1,087 644 1,352 742 1,525 785 $ 2,827 830 959 1,678 1,868 1,061 1,301 Gross income 2,051 2,330 Depreciation 492 1,009 917 171 178 191 175 142 110 Interest expense Operating expenses 212 239 270 306 334 374 477 323 156 86 Net income before tax Provision for taxes 566 929 186 126 61 34 221 363 $ 291 $ 197 $ 95 $ 52 S Net income after tax Balance sheet $ 345 $ 566 Total current assets 1,923 2,179 8,200 9,016 Gross property and equipment Accumulated depreciation 1,121 1.234 1,412 1.650 4,180 5,149 6,410 7,449 868 1,654 2,714 4,015 5,024 3,312 Net property and equipment Goodwill 3,495 3,696 3,434 3,176 5,941 3,075 1,069 1,069 1,069 Total assests 5,502 5,798 1,069 1,069 1,069 6,177 91 6,153 6,168 110 6,323 Accounts payable. 104 77 117 135 Short-term debt 335 482 842 814 585 393 Current portion long-term debt 41 140 165 200 223 267 Accrued expenses 86 97 120 134 174 168 Total current liabilities 566 796 1,218 1,258 1,099 963 Long-term debt 1,694 1,554 1,389 1,189 966 699 Deferred taxes 454 505 496 Shareholders' equity. 335 334 2,907 3,104 $5,502 $5,798 370 3,200 $6,177 $ 6,153 3,252 3,598 4,165 Total liabilities and equity $ 6,168 $6,323 Free cash flows $ (130) $ 215 $ 464 $ 490 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 it is worth the book value of its assets at the end of 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. Save & Exit Saved Help [The following information applies to the questions displayed below.] In March of 2011, Macklemore Corp. considered an acquisition of Blue Scholar Learning, Inc. (BSL), a privately held educational software firm. As a first step in deciding what price to bid for BSL, Macklemore's CFO, Ryan Lewis, has prepared a five-year financial projection for the company assuming the acquisition takes place. Blue Scholar Learning, Inc. (BSL) 5-year Financial Projection ($ millions) Actual 2010 2011 2012 2013 2014 2015 Income Statement. Net sales Cost of sales $ 1,996 $ 2,267 $ 2,508 $ 3,138 $ 3,571 1,241 1,087 644 1,352 742 1,525 785 $ 2,827 830 959 1,678 1,868 1,061 1,301 Gross income 2,051 2,330 Depreciation 492 1,009 917 171 178 191 175 142 110 Interest expense Operating expenses 212 239 270 306 334 374 477 323 156 86 Net income before tax Provision for taxes 566 929 186 126 61 34 221 363 $ 291 $ 197 $ 95 $ 52 S Net income after tax Balance sheet $ 345 $ 566 Total current assets 1,923 2,179 8,200 9,016 Gross property and equipment Accumulated depreciation 1,121 1.234 1,412 1.650 4,180 5,149 6,410 7,449 868 1,654 2,714 4,015 5,024 3,312 Net property and equipment Goodwill 3,495 3,696 3,434 3,176 5,941 3,075 1,069 1,069 1,069 Total assests 5,502 5,798 1,069 1,069 1,069 6,177 91 6,153 6,168 110 6,323 Accounts payable. 104 77 117 135 Short-term debt 335 482 842 814 585 393 Current portion long-term debt 41 140 165 200 223 267 Accrued expenses 86 97 120 134 174 168 Total current liabilities 566 796 1,218 1,258 1,099 963 Long-term debt 1,694 1,554 1,389 1,189 966 699 Deferred taxes 454 505 496 Shareholders' equity. 335 334 2,907 3,104 $5,502 $5,798 370 3,200 $6,177 $ 6,153 3,252 3,598 4,165 Total liabilities and equity $ 6,168 $6,323 Free cash flows $ (130) $ 215 $ 464 $ 490 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 it is worth the book value of its assets at the end of 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