You're an industry analyst for the telecom sector, and have been analyzing financial reports from two companies: CellT Corp. and Talk2Me Inc. 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 you'll probably need for the analysis: Data Collected CellT Corp. Talk2Me Inc. $97,500 EBIT $266,500 Depreciation $87,945 $32,175 $1,170,000 $608,400 Total operating capital Net investment in operating capital $585,000 $253,500 WACC 11.85% 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: The net operating profit after tax (NOPAT) for CellT Corp. is , whereas the NOPAT for Talk2Me Inc. is CellT Corp. has a free cash flow of , whereas, Talk2Me Inc. has a free cash flow of CellT Corp. has a return on invested capital than Talk2Me Inc. 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? 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 Depreciation $67,945 52,175 $1,170,000 $608,400 Total operating capital Net investment in operating capital $585,000 $253,500 WACC 11.85% 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: The net operating profit after tax (NOPAT) for CellT Corp. is , whereas the NOPAT for Talk2Me Inc. is CellT Corp. has a free cash flow of , whereas, Talk2Me Inc. has a free cash flow of CellT Corp. has a return on invested capital than Talk2Me Inc. 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? 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. Grade Now Save & Continue Continue without saving