Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.45 (given its target capital structure). Vandell has $8.61 million in debt that trades at par and pays an 7.7% interest rate. Vandell's free cash flow (FCF0) is $2 million per year and is expected to grow at a constant rate of 5% a year. Vandell pays a 30% combined federal and state tax rate. The risk-free rate of interest is 5% and the market risk premium is 8%. Hastings' first step is to estimate the current intrinsic value of Vandell.

Cost of equity 16.61%

WACC 13.24%

Question: What is Vandell's intrinsic value of operations? (Hint:Use the free cash flow corporate valuation model.) Round your answer to two decimal places. Do not round intermediate calculations.

I got 16.88 million but its saying its incorrect