Consider the following scenario: Western Gas & Electric Co. (WG&E) is considering an acquisition of Thatherton Fuels., and estimates that acquiring Thatherton will result in incremental after-tax net cash flows in years 1-3 of $20.0 million, $30.0 million, and $36.0 million, respectively. After the first three years, the incremental cash flows contributed by the Thatherton acquisition are expected to grow at a constant rate of 4% per year. WG&E's current beta is 1.20, but its post-merger beta is expected to be 1.56. The risk-free rate is 3%, and the market risk premium is 5.10%. Based on this information, complete the following table by selecting the appropriate values: Value 10.96% Post-merger cost of equity Projected value of the cash flows at the end of three years The value of Thatherton Fuels' contribution to Western Gas & Electric Co. (WG&E) Thatherton Fuels has 4 million shares of common stock outstanding. What is the largest tender offer Western Gas & Electric Co. (WG&E) should make on each of Thatherton Fuels' shares? $115.63 $138.76 $138.75 $92.50 O