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(Solved): available, complete the following statements: BlastTel Inc. has a free cash flow than SaneTel ...



available, complete the following statements: BlastTel Inc. has a

free cash flow than SaneTel Corp. does. The net operating profit after tax (NOPAT) for BlastTel Inc. is

, whereas the NOPAT for SaneTel Corp. is

. BlastTel Inc. has a return on invested capital of

. whereas, SaneTel Corp. 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 less than the rate of return that investors require, which is the weighted average cost of capital (WACC), then the firm is adding value. If ROIC is greater than the rate of return that investors require, which is the weighted average cost of capital (WACC), then the firm is adding value.

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