Assume that the risk-free rate of interest is 4% and the market risk premium is 7%. Both Vandell and Hastings face a 40% tax rate. structure of 30% debt will be maintained. Interest at Year 4 will be $1.407 million, after which the interest and the tax shield will grow at 4%. a. What is Vandell's pre-acquisition levered cost of equity? What is its unlevered cost of equity? Do not round intermediate calculations. Round your answers to two decimal places. Pre-acquisition levered cost of equity: Unlevered cost of equity: b. What is the intrinsic unlevered value of operations at t=0 (assuming the synergies are realized)? Do not round intermediate calculations. Round your answer to the nearest cent. 5 $ million to acquirer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places. Value of operations: $ nillion Equity value to acquirer: $ million Intrinsic stock price per share: $