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10. Evaluating free cash flows and return on invested capital Yostre an industry acalyst for the telecom secter, and have been analying financial reports from

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10. Evaluating free cash flows and return on invested capital Yostre an industry acalyst for the telecom secter, and have been analying financial reports from two companies: Trst Inc. and PhoneZ Corp. The corporate tax rate for both firms is 35\%, Your assoclyte analyst has calculoted and complied, in the following table, a list ef important figures youn probably need for the ansirsis: In your analyis, you want to look for several characteristics-one of them being the return on invested capital (ROSC). Uaing the information arallable, camplete the following statements: - THAT inc has a free cash flow than Phooez Corp; does - The net operating orefit affer tax (NOPAT) for TTBT inc is , whereas the NOPAT for Mhonez Cerp. is - TTRT Ine has a return on imvested capital of twhereas, Shooez Corp, has a return en invested captai of Your inference from the ahablyis is that both firms are in a high-growh phate, and thelr growh wili be broficoble. Canaldering vour analys, which of the following statements is true? value In your analys, you want to lock for several characterstics - ene of them being the return on invested caphal (rotc). Whing the infarmacien avalabile, camplete the following statements: - Trsz inc. has a free cash flow than Phonez Corp, does. - The nat operating padit after Lax (Nonat) for TTar Inci is , whereas the NCbat no Monez Cerp. I - Trkt inc, has a return en invested captal of i whereas, thone 2 Corp, has a return on iwesued capital of Your inference from the shaws is that both firms are in a kigh-groweh phase, and their growth wia be proficable. Contibering your analysis, anch the foliowing statements is true? If nolC is iess than the rate ef return that imestors require, which is the weighted average cost of capial (wrice), then the firm ia addin value

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