inancial Statements, Cash Flow, and Taxes raded Assignment | Read Chapter 2 | Back to Assignment Attempts: Do No Harm: 6 9. Evaluating free cash flows and return on invested capital You are an ndustry analyst for the telecom sector. You are analyzing financial reports from two companies: Talker Corp. and MobileTalk 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: Data Collected EBIT Depreciation Total operating capital Net investment in operating capital WACC Talker Corp. $137,500 $55,000 $808,500 $385,000 8.84% MobileTalk Inc. $97,900 $39,160 $630,850 $203,500 11 .50% 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: . The net operating profit after tax (NOPAT) for Talker Corp, is , whereas the NOPAT for MobileTalk Inc. is Talker Corp. has a free cash flow of flow of , whereas, MobileTalk Inc, has a free cash . Talker Corp, has a return on invested capital than MobileTaik Inc. has 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 a company has negative NOPAT but a positive free cash flow, then the firm could be in a high-growth phase and making investments in operating capital to support growth. O If a company has positive NOPAT but a negative free cash flow, then the firm could be in a high-growth phase and making investments in operating capital to support growth