$7\mathrm{.}9\%.$ Assume that the risk$-$free rate of interest is $7\%$ and the market risk premium is $7\%.$ Both Vandell and Hastings face a $40\%$ tax rate.

Activity Frame in Year $4$ are based on the new debt level at Year $3$ and the $8\mathrm{.}0\%$ interest rate. The Year $4$ interest expense is expected to grow at $5\%$ after Year $4.$ answers to two decimal places.

Year $4$ interest expense: $

million

Year $4$ tax shield: $$,$ million Round your answers to two decimal places.

Unlevered value of operations: $ million

Value of tax shield: $$,$ million

c$.$ What is the maximum price per share that Hastings would bid for Vandell? Do not round intermediate calculations. Round your answer to the nearest cent.

Maximum price per share that Hastings would bid for Vandell: $

$/$share