Hastings Corporation estimates that if it acquires Corporation, synergies will cause Vandell's free cash flows Vandell and to be $2.5 million, $2.9 million, $3.4 million, s3.57 million at Years 1 through flows will grow at a 4, respectively, after which the free cash in debt (which has constant 5% rate. Hastings plans to million acquisition. an 8% interest assume financing at the time of the rate) and raise additional debt Hastings estimates that interest payments will each year for Years 1, 2, and 3. After Year be $1.5 million Year 4 target capital structure of 30% debt will be Interest at will be $1.472 million, after which shield will grow at 5%. As the interest and the tax described in Problem 22-1, ndell currently has 1 million shares outstanding and a target capital structure consisting of 30% current beta is 1.4 (i.e., based on its target capital structure). a. What is Vandell's pre-acquisition levered cost of equity? What is its unlevered cost of equity? (Hint: You can use the pre-acquisition levered cost of equity you determined previously if you worked Problem b. What is the intrinsic unlevered value of operations at t o (assuming the synergies are realized)? c. What is the value of the tax shields at t 0? d. What is the total intrinsic value of operations at t o? What is the intrinsic value of Vandell's equity to Hastings? What is Vandell's intrinsic stock price per share