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 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.

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.

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: Sane Tel Corp. $73,500 Data Collected BlastTel Inc. EBIT $200,900 Depreciation $66,297 Total operating capital $882,000 Net investment in operating capital $441,000 WACC 11.85% $24,255 $458,640 $191,100 11.88% 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: v . The net operating profit after tax (NOPAT) for BlastTel Inc. is $130,585 , whereas the NOPAT for SaneTel Corp. is $47,775 BlastTel Inc. has a free cash flow of , whereas, SaneTel Corp. has a free cash flow of BlastTel Inc. has a higher return on invested capital than SaneTel Corp. 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