Question
You are an industry analyst for the telecom sector. You are analyzing financial reports from two companies. Talker Corp. and MobileTalk, Inc. Corporate tax for
You are an industry 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:
Talker Corp MobileTalk, Inc
EBIT $125,000 $89,000
Depreciation $50,000 $35,600
Total Operating Capital $735,000 $573,500
Net Investment in operating capital $350,000 $185,000
WACC 8.84% 11.50%
What is the FREE CASH FLOW for Talker Corp? and What is the FREE CASH FLOW for MobileTalk?
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