Question
2. Two firms are identical except Company A pays higher interest expenses and lower dividends, while Company B pay lower interest charges and higher dividends.
2. Two firms are identical except Company A pays higher interest expenses and lower dividends, while Company B pay lower interest charges and higher dividends. This will result in: A. Company A having both a higher Operating Cash Flow and a higher Financing Cash Flow. B. Company B having both a higher Operating Cash Flow and a higher Financing Cash Flow. C. Company A having a higher Operating Cash Flow and a lower Financing Cash Flow. D. Company B having a higher Operating Cash Flow and a lower Financing Cash Flow. E. None of the above are correct.
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