Galaxy Corp is under consideration for acquisition. An analyst has projected the following figures for next year: ⚫ Net income: $450m ⚫ Net interest after tax: $150m Change in deferred taxes: +$40m • Depreciation: $250m • Change in net working capital: +$45m • Capital expenditure (CAPEX): $300m Calculate Galaxy Corp's estimated free cash flow.

Galaxy Corp is under consideration for acquisition. An analyst has projected the following figures for next year: ⚫ Net income: $450m ⚫ Net interest after tax: $150m Change in deferred taxes: +$40m • Depreciation: $250m • Change in net working capital: +$45m • Capital expenditure (CAPEX): $300m Calculate Galaxy Corp's estimated free cash flow.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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