capital structure). Vandell's debt interest rate is 7.6%. Assume that the risk-free rate of interest is 5% and the market risk premium is 7%. Both Vandell and Hastings face a 30% tax rate. 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. \$ your answer to two decimal places. $ million places. Value of operations: \$ million Equity value to acquirer: $ million Intrinsic stock price per share: \$