Youre an industry analyst for the telecom sector, and have been analyzing financial reports from two companies: TT&T Inc. and PhoneZ Corp. The corporate tax rate for both firms is 35%. Your associate analyst has calculated and compiled, in the following table, a list of important figures youll probably need for the analysis:

Data Collected

	TT&T Inc.	PhoneZ Corp.
EBIT	$164,000	$60,000
Depreciation	$54,120	$19,800
Total operating capital	$720,000	$374,400
Net investment in operating capital	$360,000	$156,000
WACC	11.85%	11.88%

In your analysis, you want to look for several characteristicsone of them being the return on invested capital (ROIC).

Using the information available, complete the following statements:

	TT&T Inc. has a free cash flow than PhoneZ Corp. does.
	The net operating profit after tax (NOPAT) for TT&T Inc. is , whereas the NOPAT for PhoneZ Corp. is .
	TT&T Inc. has a return on invested capital of , whereas, PhoneZ Corp. has a return on invested capital of .