10 marks] Question 6 Hasting Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.4 (given its target capital structure). Vandell has R10 82 million in debt that trades at par and pays an 8% interest rate. Vandelt's free cash flow (FCF0) is R2 milion per year and is expected to grow at a constant rate of 5% a year. Vandell pays a 40% tax rate. The risk-free rate of interest is 5% and the market risk premium is 6%. Hasting's first step is to estimate the current intrinsic value of Vandell. What are Vandell's cost of equity and weighted average cost of capital? (4) 6.1. (3) What is Vandell's intrinsic value of operations? 6.2. (3) 6.3. What is the current intrinsic value of Vandell's stock