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Use the information below to determine the free cash flow for Year 0. ABC Company Free Cash Flows ($ in millions) Year -1 Year 0

Use the information below to determine the free cash flow for Year 0. ABC Company Free Cash Flows ($ in millions) Year -1 Year 0 Free Cash Flows Earnings Before Interest & Taxes (EBIT) $173.3 $182.0 Income Taxes Pain on EBIT 60.7 63.7 Earnings Before Interest and After Taxes 112.6 118.3 Depreciation Expense 66.7 70.0 Change in Networking Capital 2.3 4.0 Capital Expenditures 33.3 175.0 Unlevered Free Cash Flows 33.3 175.0 Interest Paid 143.7 9.3 Interest Tax Shield 6.6 6.8 Change in Debt Financing 5.7 23.8

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