Bio_2023 is a growing company. With recent new product, the estimated annual cash flow growth rate for the next two years is 25%, and long term growth is expected to be 12%. The company pays no dividend. The current weighted average cost of capital is 15%. Current stock price is 50 dollar per share. The most recent 12 months financial information are given below: Net working capital excluding cash increased from $7,460,000 to $9,985,000 Book value increased from 81,250,000 to 101,250,000 There is no debt Fixed asset purchase is $8,450,000 Net income for the past year is $20,000,000 The marginal tax rate is 40% Noncash charges for the depreciation etc. were $1,250,000 The company might establish a dividend and will issue debt to fund future new product development. 1) Determine the value of free cash flow to firm model to determine the value of the company. 2) What is the impact on FCFF if the company will issue debt and establish a dividend. Explain