Question: Selected information (in U.S. $ millions) for Google Inc. and Microsoft Corp. for 2015 and 2016, respectively, follows: ________________________________________________Google............Microsoft Net cash provided by operating activities..........$26,024..........$33,325

Selected information (in U.S. $ millions) for Google Inc. and Microsoft Corp. for 2015 and 2016, respectively, follows:

________________________________________________Google............Microsoft

Net cash provided by operating activities..........$26,024..........$33,325

Net capital expenditures.........................................9,915...........23,950

Dividends paid............................................................-0-...........11,006

Instructions

(a) Calculate the free cash flow for each company. Which company has the better free cash flow? Why?

(b) Why do you think Microsoft has paid out dividends while Google has not?

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