Financial accounting information can often be found at financial websites. These websites are useful for collecting information

Question:

Financial accounting information can often be found at financial websites. These websites are useful for collecting information about a company’s stock price, analysts’ forecasts, history, historical financial accounting information, and much more. One such site is Yahoo! Finance (finance.yahoo.com).

Required:
1. Visit Yahoo! Finance and get a stock quote for Google. To do this, type “GOOG” in the “Get Quotes” box. Under “Financials” click on the “Cash Flow” link, calculate Google’s free cash flows for the three most recent years.
2. Calculate IBM’s free cash flows in the same way by typing “IBM” in the “Get Quotes” box.
3. Compare the trends in free cash flows between the companies. What would explain differences between these two companies’ free cash flows?
4. Click on “Historical Prices” and compare the trend in these companies’ stock prices over the same three-year period used to calculate free cash flows.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...