Using Summarized Items in Income Statement and Balance Sheet of BrandCo presented in below answer the following questions: a) Assume an operating tax rate of 25 percent determine the free cash flow to firm for year 1. b) Assuming the firm is financed 45% by debt and rest is equity, using these weights, compute the weighted average cost of capital. Assume the pretax cost of debt is 12 percent, the cost of equity is 20 percent, and the marginal tax rate is 25 percent. c) Using free cash flow to firm computed in Question (a) and the weighted average cost of capital computed in Question (b), estimate BrandCo's intrinsic stock price using the constant growth model formula and that firm has 50 shares outstanding. The estimated growth rate in free cash flow is 12.62%. Income Statement Today 800 640 40 Revenues Total Costs Depreciation Operating Profits Interest Expense EBT Taxes Net Income 120 16 104 26 Year1 840 672 42 126 16 110 27.5 82.5 78 Balance Sheet Items Operating Working Capital Capital Expenditure Accumulated Depreciation Net Fixed Assets Debt Shareholder's Equity Today 70.1 588.4 150 438.4 200 308.5 Year1 73.6 652.3 192 460.3 210 323.9