Aftempts Keep the Highest / 2 10. Evaluating free cash flows and return on invested capital You're an industry analyst for the telecom sector, and have been analyzing financial reports from two companies: CeliT Corp. and Talkz Me Inc. The corporate tax rate for both firms is 35%. Your associate analyst has caiculated and compiled, in the following table, a list of important figures you'l probably need for the analysis: In your analysis, you want to look for several characteristics-one of them being the return on invested capital (RoIC). Using the information availabie, complete the following statements: In your analysis, you want to look for several characteristics-one of them being the return on invested capital (RolC). Using the information available, complete the following statements: - Celir Corp. has a free cash flow than Talk2Me Inc. does. - The net operating profit after tax (NOPAT) for CeirT Corp, is , whereas the NOPAT for Talk2Me Inc. is - Celit Corp. has a return on invested capital of , whereas, Talk2Me inc, has a return on invested capital of 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 ROIC is greater than the pte of return that investors require, which is the weighted average cost of capital (WACC), then the firm is adding value. If ROIC is less than the rate of retum that investors require, which is the weighted average cost of capital (WACC), then the firm is adding value