Question B1 [4 marks] Round your answers to 2 decimal places (only if necessary). Use the following information to answer the question(s) below. Omicron Technologies is an all-equity firm with 50 million shares outstanding. Omicron has $200 million in cash and expects future free cash flows of $80 million per year. Management plans to use the cash to expand the firm's operations, which in turn will increase future free cash flows by 5% (i.e., future free cash flows permanently increase to ($80 million x 1.05) per year). Omicron's cost of capital is 10% and assume that capital markets are perfect. A member of Omicron's board of directors suggests that Omicron's stock price would be higher if they used the $200 million to repurchase shares instead of funding the expansion. If you were advising the board, what course of action would you recommend, expansion or repurchase? Explain why. Question B1 [4 marks] Round your answers to 2 decimal places (only if necessary). Use the following information to answer the question(s) below. Omicron Technologies is an all-equity firm with 50 million shares outstanding. Omicron has $200 million in cash and expects future free cash flows of $80 million per year. Management plans to use the cash to expand the firm's operations, which in turn will increase future free cash flows by 5% (i.e., future free cash flows permanently increase to ($80 million x 1.05) per year). Omicron's cost of capital is 10% and assume that capital markets are perfect. A member of Omicron's board of directors suggests that Omicron's stock price would be higher if they used the $200 million to repurchase shares instead of funding the expansion. If you were advising the board, what course of action would you recommend, expansion or repurchase? Explain why