26) Even though Amazon and Wal-Mart are both retailers, Amazons Free Cash Flow profile looks significantly different from Wal-Marts. Amazons FCF is not shown here, but based on your knowledge of the business models and this lesson in the course, why might you expect the Free Cash Flows to differ so much?

a) Because Amazon is spending far less on Inventory than Wal-Mart since its an online retailer.

b) Because Amazon is a high-growth company, whereas Wal-Mart is a mature, stable company.

c) Because Amazon is re-investing in its business more aggressively with higher CapEx as a percentage of revenue, whereas Wal-Mart is spending less as a percentage of revenue and is keeping its spending in about the same range.

d) Because Amazon requires upfront payment for 100% of products prices, whereas Wal-Mart allows for installment payments.

e) Because Amazon tends to delay payments to suppliers for as long as possible, whereas Wal-Mart pays suppliers more quickly.