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Company A Company B Cash flow from operations 555 Cash flow from operations 7925 Cash investment in operations 1150 Cash investment in operations 3200 Interest

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Company A Company B Cash flow from operations 555 Cash flow from operations 7925 Cash investment in operations 1150 Cash investment in operations 3200 Interest Paid after tax 105 Interest Received after tax 1185 Net Dividend 200 | Net Dividend 1200 1. Calculate Free Cash Flow for both the companies. 2. From a valuation point of view which one is more difficult to handle and why? 3. Why is Company A paying interest and why is Company B receiving interest 4. Why is the dividend for company A low and why is the dividend for Company B high? Paragraph B

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