Hastings Corporabon is interested in acquiring Vendell Corporation. Vandeil has 1.5 million shares outstanding and a target capital structure consisting of 3oli dabe; ita bete is 1,50 (0iven its target capitol structure) Vandel has $11,51 million in debt that trades at par and pays an 8% interest rate. Vardells current free cash fiow (FCF0) It 52 millian per year and is expected to grow at a constant rete of 6% a year Vandell pays a 25 w combined federal-plus-state tax rate, the same rate paid oy Hastings The risk-free rato of interest is 5%, and the market risk premium is 7%4. Hasting's frat step is to estimate the current intringic value of Vandeli. a. What is Wanodells cost of equity? Do not round intermediate calculotions. Round your answer to two decimal places. b. What is its weighted average cost of captal? Do not round intermediate calculations. Round your answer to two decimal pisces 6. What is Vondeils intrinsic value of operabons? (Hint: Use the free cesh flow corporate valuation model since the copital structure lan c changing.) Enter your anwwer in milions. For example, on answer of 51.23 million should be entered as 1,23, not 1,230,000. Do not round intermediate calculations. Roand your answer to twe decimal places. 4. Based on this analysiz, what is the minimum stock price that Vandell's ahareholders should accept? Do not round intermediate calculations. Round your ancwer to the nemrest cert