10. Evaluating free cash flows and return on invested capital You are an industry analyst for the telecom sector. You are analyzing financial reports from two companies: CellT Corp. and Talk2Me Inc. Corporate tax for both firms is 35%. Your associate analyst has calculated and compiled, in the following table, a list of important figures you need for the analysis: In your analysis, you want to look for several characteristics-one of them being the return on invested capital (ROIC). Using the information available, complete the following statements: - CellT Corp. has a free cash flow than Talk2Me Inc. - The net operating profit after taxes (NOPAT) for CellT Corp. is , whereas the NOPAT for Talk2Me Inc. is - CellT Corp. has an ROIC of , whereas Talk2Me Inc. has an ROIC of Your inference from the analysis is that both firms are in a high-growth phase, and their growth will be profitable. Considering your analysis, which of the following statements is true? If ROIC is less than the rate of return that investors require, which is the weighted average cost of capital (WACC), then the firm is adding value. If ROIC is greater than the rate of return that investors require, which is the weighted average cost of capital (WACC), then the firm is adding value