Abc Gambit Enterprises is being evaluated as an acquisition target. For theupcoming year an analyst has estimated the following values: netincome $300m, net interest after tax ==$100m, change in deferredtaxes = +$25m, depreciation = $200m, change in net working capital =+$30m, CAPEX = $250m. Calculate the firm's estimated free cash flow.

Given:Net income = 300 millionNet interest after tax = 100 millionChange in deferred tax = 25…

Answered: Gambit Enterprises is being evaluated…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter23: Corporate Restructuring

Section: Chapter Questions

Problem 10P

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