Company DEF is a listed firm in the health industry. It reported net income of $ 150 million in 2019. It had capital expenditures of $ 65 million and depreciation of $ 30 million in 2019, and its non-cash working capital was $ 500 million (on revenues of $ 10 billion). The firm has a debt ratio of 10%, and plans to maintain this debt ratio. Income, cap ex, depreciation and revenues are all expected to grow 10% in 2020; non-cash working capital as a percent of revenues remains unchanged. REQUIRED Q5.1 Estimate the amount of cash that is available for the firm to pay out as dividends (FCFE) next year. [30 Marks] Q5.2 Now suppose that, instead of maintaining the current debt ratio, the firm plans to pay off its outstanding debt of $ 150 million next year and become a debt-free company. Estimate the amount of cash that is available for the firm to pay out as dividends (FCFE) next year. [30 Marks] Q5.3 In addition to dividend payment, what is the alternative approach that has been commonly used by firms to return cash to shareholders? [10 Marks] Q5.4 Discuss the general framework that could be applied to assess a firm's dividend policy. [30 Marks]