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?