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You are an industry analyst for the telecom sector. You are analyzing financial reports from two companies: CeliT Corp. and TalkzMe Inc. Corporate tax for

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You are an industry analyst for the telecom sector. You are analyzing financial reports from two companies: CeliT Corp. and TalkzMe 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 anaiysis: In your analysis, you want to look for several characteristica-one of them being the retum on invested capital (RO1C). Using the information waiable, complete the folsowing statements: - Ceil Corp. has a free cash fiow than TalkzMe inc. - The net operating proft after taxes (NOPAT) for Celt Corp. is whereas the NOPAT for Talk2Me inc: is - Ceirr Corp. has an rotc of whereas TankMe the. has an RoiC of Your inference from the analysis is that both firms are in a high.growth phase, and their growth wall be profitable. Considering your analysis, which of the following statements is true? If ROIC is greater than the rate of retum that investors require, which is the weighted average cost of capital (WacC), then the firm is odaing value. If ROtC is less than the rate of teturn that investors require, which is the weighted average cost of capital (wacc), then the firm is adding value

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