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You are an industry analyst for the telecom sector. You are analyzing financial reports from two companies: BlastTel Inc. and SaneTel Corp. Corporate tax for
You are an industry analyst for the telecom sector. You are analyzing financial reports from two companies: BlastTel Inc. and SaneTel Corp. 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 BlastTel Inc. EBIT $224,400 Depreciation $78,540 Total operating capital $950,400 Net investment in operating capital $396,000 WACC 12.28% Sane Tel Corp. $92,400 $32,340 $394,680 $171,600 17.35% 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 BlastTel Inc. is , whereas the NOPAT for SaneTel Corp. is BlastTel Inc. has a free cash flow of , whereas, Sane Tel Corp. has a free cash flow of BlastTel Inc. has a return on invested capital than SaneTel Corp. has
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