Part I. Selected information (in U.S. $ millions) for Alphabet Inc. and Microsoft Corp. for their fiscal
2021 years follows:
Alphabet Microsoft
Instructions
Net cash provided by operating activities
Net capital expenditures
Dividends paid
$91,652
$76,740
24,099
21,544
16,521
a. Calculate the free cash flow for each company. Which company has the better free cash flow?
b. Why do you think Microsoft paid dividends while Alphabet did not?