Hasting corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt. Van dells debt interest rate is 8%. Assume that the risk-free rate of interest is 4% and the market risk premium is 5%. Both Vandell and Hasting face 35% tax rate.

Van dells free cash flow (FCFo) is )2million per year and is expected to grow at a constant rate of 4% a year; it's beta is 1.60. What is the value of Vandells operations?

If Vandell has $10.80 million in debt, what is the current value of Vandells stock? Round answer to nearest cent.