You are comparing the free cash flows of two leading beverage companies, Coca-Cola and PepsiCo, for the fiscal year ended December 31, 2023. Below are the summarized cash flow data for both companies:

For Coca-Cola:

• Operating cash flow: $10 billion
• Capital expenditures: $3 billion
• Dividends paid: $2 billion

For PepsiCo:

• Operating cash flow: $12 billion
• Capital expenditures: $4 billion
• Dividends paid: $3 billion

Requirements:

1. Calculate the free cash flow for both Coca-Cola and PepsiCo.
2. Compare the free cash flows of Coca-Cola and PepsiCo.
3. Discuss the financial flexibility and investment capacity of both companies based on their free cash flows.