Provide a British Pound Valuation for the Yellow Page businesses of British Telecom assuming you are a banker for Hicks, Muse. Utilize the information from the Valuing a Cross-Border LBO: Bidding on the Yell Group case study.

• Utilize Exhibit 8 to calculate interest expense:
  • The Vendor Loan is a rolled loan, meaning there is no explicit interest expense annually, but that the principal of the loan increases every year by the equivalent of the interest payment and therefore overall debt increases by this amount every year. For tax purposes however, even though the rollup is not paid out annually, it is tax deductible as if it was an interest payment.