Consider the following scenario: Sato Chemicals Inc. is considering an acquisition of Tolbotics Inc., and estimates that acquiring Tolbotics will result in incremental after- tax net cash flows in years 1-3 of $6 million, $9 million, and $10.8 million, respectively. After the first three years, the incremental cash flows contributed by the Tolbotics acquisition are expected to grow at a constant rate of 6% per year. Sato's current beta is 0.40, but its post-merger beta is expected to be 0.52. The risk-free rate is 4.5%, and the market risk premium is 6.60%. Based on this information, complete the following table by selecting the appropriate values. (Note: Round your intermediate calculations to two decimal places.) Value Post-merger cost of equity Projected value of the cash flows at the end of three years The value of Tolbotics Inc.'s contribution to Sato Chemicals Inc. Tolbotics Inc. has 3 million shares of common stock outstanding. What is the largest tender offer Sato Chemicals Inc. should make on each of Tolbotics Inc.'s shares? $131.67 $164.58 $197.50