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Company A Company B Cash flow from operations 7425 Cash flow from operations 490 Cash investment in operations 3200 Cash investment in operations 1150 Interest
Company A Company B Cash flow from operations 7425 Cash flow from operations 490 Cash investment in operations 3200 Cash investment in operations 1150 Interest Received after tax 185 Interest Paid after tax 1105 Net Dividend 11200 Net Dividend 200 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 B paying interest and why is Company A receiving interest 4. Why is the dividend for company Blow and why is the dividend for Company A high
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