Orion Technologies is being analysed as a potential acquisition target. For the upcoming year, an analyst estimates the following: ⚫ Net income = $280 million . Net interest after tax = $90 million • Change in deferred taxes = +$20 million ⚫ Depreciation = $180 million • . Change in net working capital +$40 million Capital expenditures (CAPEX) = $230 million What is the firm'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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Orion Technologies is being analysed as a potential acquisition target. For the
upcoming year, an analyst estimates the following:
⚫ Net income = $280 million
. Net interest after tax = $90 million
•
Change in deferred taxes = +$20 million
⚫ Depreciation = $180 million
•
.
Change in net working capital +$40 million
Capital expenditures (CAPEX) = $230 million
What is the firm's estimated free cash flow?
Transcribed Image Text:Orion Technologies is being analysed as a potential acquisition target. For the upcoming year, an analyst estimates the following: ⚫ Net income = $280 million . Net interest after tax = $90 million • Change in deferred taxes = +$20 million ⚫ Depreciation = $180 million • . Change in net working capital +$40 million Capital expenditures (CAPEX) = $230 million What is the firm's estimated free cash flow?
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