Hastings Corporation is interested in acquiring Vandel Corporation, Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.55 (given its target capital structure). Vandell has $8.79 million in debe that trades at par and pays a 7.9% interest rate. Vandell's free cash flow (FCFo) is $1 million per year and is oupected to grow at a constant rate of 4% a year. Vandell pays a 35% combined federal and state tax rate. The risk-free rate of interest is 3%, and the market risk premium is 5%. Hesting's finst step is to estimate the current intrirsic value of Vand lil. a. What are Vandeil' cast of equity and weighted average cost of capital? Do not round intermediate calculations. Round your answers to two decimal places. Cest of equity: WACC b. What is Vandelis intrinsic value of operations? (hint: Use the free cash fow corporate valuation model.) Do not round intermediate calculations. Enter your answer in malions. For example, an answer of $1.23 millian should be entered os 1.23, not 1,230,000. Round your answer to two decimal places. c. Whet is the current intrinsic value of vandeth stock? Do not round intermediate calculatians. Round your answer to the nearest cent. 1 (share)