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You are an Industry analyst for the telecom sector. You are analyzing financial reports from two companies: CellT Corp. and Talk2Me 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 S analysis: Data Collected CellT Corp. Talk2Me Inc. EBIT $341,700 $140,700 Depreciation $119,595 $49,245 Total operating capital $1,447,200 $600,990 Net Investment in operating capital $603,000 $261,300 WACC 12.28% 17.35% ry 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. 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? O 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 It Now Save & Continue Continue without saving 509 Data Collected dy Tools CellT Corp. Talk2Me Inc. EBIT $341,700 $140.700 $119,595 $49,245 Depreciation Total operating capital Net investment in operating capital $1,447,200 $600,990 Tips $603,000 $261,300 Tips WACC 12.28% 17.35% ols 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: whereas the NOPAT for Talk2Me Inc. is The net operating profit after tax (NOPAT) for CellT Corp. is ductory wherea c. has a free cash flow of CellT Corp. has a free cash flow of $293,179 has. . CellT Corp. has a return on invested capital tha $91,455 Your inference from the analysis is that both firms are in a hig e, and their growth will be profitable. Considering your analysis, which of $222,105 the following statements is true? --$119,595 O If a company has positive NOPAT but a negative free tasITNOW tlen the firm could be in a high-growth phase and making investments in operating capital to support growth. O 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. Data Collected CellT Corp. Talk2Me Inc. EBIT $341,700 $140, 700 Depreciation $119,595 $49,245 Total operating capital $1,447 200 $600,990 Net investment in operating capital $603,000 $261,300 WACC 12.28% 17.35% 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 $91,455 CellT Corp. has a return on invested capital than Talk2Me Inc. has. --$49,245 Your inference from the analysis is that both firms are in a high-growth phase, and their growth will be profitable. Consid alysis, which of $282,073 the following statements is true? $222,105 If a company has positive NOPAT but a negative free cash flow, then the firm could be in a high-growth phase and mormy Investments in operating capital to support growth. O 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 It Now Save & Continue Continue without saving Data Collected ols CellT Corp. Talk2Me Inc. EBIT $341,700 $140, 700 Depreciation $119,595 $49,245 $1,447,200 $600,990 Total operating capital Net investment in operating capital $603,000 $261,300 WACC 12.28% 17.35% 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: ary 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 retu capital than Talk2Me Inc. has. - $169,845 Your inference from the analysis is th -$380,895 are in a high-growth phase, and their growth will be profitable. Considering your analysis, which of the following statements is true? -$379,395 O If a company has positive N -$500,490 hegative free cash flow, then the firm could be in a high-growth phase and making Investments in operating capital to supportyrorer 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. Data Collected CellT Corp. Talk2Me Inc. EBIT $341,700 $140,700 Depreciation $119,595 $49,245 $1,447,200 $600,990 Total operating capital Net investment in operating capital $603,000 $261,300 WACC 12.28% 17.35% 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, Talk2 Me Inc. has a free cash flow of CellT Corp. has a return on invested capital than Talk2Me Inc. has. -$289,440 Your inference from the analysis is that both firms are in a high-growth phase, and their growth will b -$169,845 Fonsidering your analysis, which of the following statements is true? -$39,195 -$380,895 hase and making investments in O If a company has positive NOPAT but a negative free cash flow, then the firm could be in a 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. Data Collected CellT Corp. Talk2Me Inc. EBIT $341 700 $140,700 $119,595 $49,245 Depreciation Total operating capital Net investment in operating capital $1,447,200 $600,990 $603,000 $261,300 WACC 12.28% 17.35% 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: y The net operating 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. lower Your inference from ysis is that both firms are in a high-growth phase, and their growth will be profitable. Considering your analysis, which of the following statem higher ue? 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 It Now Save & Continue