You are an industry analyst for the telecom sector you are


You are an industry analyst for the telecom sector. You are analyzing financial reports from two companies. Talker Corp. and MobileTalk, 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 analysis:

                                                                                    Talker Corp                                 MobileTalk, Inc

EBIT                                                                                $125,000                                   $89,000

Depreciation                                                                     $50,000                                     $35,600

Total Operating Capital                                                      $735,000                                    $573,500

Net Investment in operating capital                                     $350,000                                    $185,000

WACC                                                                             8.84%                                         11.50%

What is the FREE CASH FLOW for Talker Corp? and What is the FREE CASH FLOW for MobileTalk?

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