Identify two different stock exchanges in the United States. Using the two stocks you identified, determine the free cash flows from 2015 and 2016. What inference can you draw from the companies’ free cash flows?

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The free cash flow (FCF) represents the surplus finances available in a company after funding all its projects with a positive net present value. According to Abughniem et al. and Yeo, FCF is the net operating income generated by a firm before accounting for such activities, which support operations and maintain capital assets as depreciation. About Pfizer and Amazon, the free cash flow from 2015 to 2016 is as computed below:

The formula for FCF = Cash from operating expenses – Capital expenditures Stock.

	Pfizer (NYSE)	Amazon (NASDAQ)
2015	(14,688-1397) = 13,291	(12039-4589) = 7450
2016	(15901-1823) = 14,078	(17203-6737) = 10,466

The above illustration shows that Pfizer had a stronger financial performance than Amazon in 2015 and 2016. Moreover, Pzifer’s FCF had a smaller growth from 2015 to 2016 than Amazon, a 40% increase.

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Academic.Tips. (2023) 'Identify two different stock exchanges in the United States. Using the two stocks you identified, determine the free cash flows from 2015 and 2016. What inference can you draw from the companies’ free cash flows'. 11 March.

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Academic.Tips. (2023, March 11). Identify two different stock exchanges in the United States. Using the two stocks you identified, determine the free cash flows from 2015 and 2016. What inference can you draw from the companies’ free cash flows? https://academic.tips/question/identify-two-different-stock-exchanges-in-the-united-states-using-the-two-stocks-you-identified-determine-the-free-cash-flows-from-2015-and-2016-what-inference-can-you-draw-from-the-companies/

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Academic.Tips. 2023. "Identify two different stock exchanges in the United States. Using the two stocks you identified, determine the free cash flows from 2015 and 2016. What inference can you draw from the companies’ free cash flows?" March 11, 2023. https://academic.tips/question/identify-two-different-stock-exchanges-in-the-united-states-using-the-two-stocks-you-identified-determine-the-free-cash-flows-from-2015-and-2016-what-inference-can-you-draw-from-the-companies/.

1. Academic.Tips. "Identify two different stock exchanges in the United States. Using the two stocks you identified, determine the free cash flows from 2015 and 2016. What inference can you draw from the companies’ free cash flows?" March 11, 2023. https://academic.tips/question/identify-two-different-stock-exchanges-in-the-united-states-using-the-two-stocks-you-identified-determine-the-free-cash-flows-from-2015-and-2016-what-inference-can-you-draw-from-the-companies/.

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Academic.Tips. "Identify two different stock exchanges in the United States. Using the two stocks you identified, determine the free cash flows from 2015 and 2016. What inference can you draw from the companies’ free cash flows?" March 11, 2023. https://academic.tips/question/identify-two-different-stock-exchanges-in-the-united-states-using-the-two-stocks-you-identified-determine-the-free-cash-flows-from-2015-and-2016-what-inference-can-you-draw-from-the-companies/.

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"Identify two different stock exchanges in the United States. Using the two stocks you identified, determine the free cash flows from 2015 and 2016. What inference can you draw from the companies’ free cash flows?" Academic.Tips, 11 Mar. 2023, academic.tips/question/identify-two-different-stock-exchanges-in-the-united-states-using-the-two-stocks-you-identified-determine-the-free-cash-flows-from-2015-and-2016-what-inference-can-you-draw-from-the-companies/.

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