What is the free cash flow for talker corp and mobiletalk

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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?

Reference no: EM131185787

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