Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt. Vandell's debt interest rate is 8%. Assume that the risk-free rate of interest is 4% and the market risk premium is 6%. Both Vandell and Hastings face a 30% tax rate.

Vandell's free cash flow (FCF₀) is $1 million per year and is expected to grow at a constant rate of 5% a year; its beta is 1.50. What is the value of Vandell's operations? (Hint: Use the corporate valuation model.) Round your answer to two decimal places. Do not round intermediate calculations. $ million

If Vandell has $9.06 million in debt, what is the current value of Vandell's stock? (Hint: Use the corporate valuation model.) Round your answer to the nearest cent. Do not round intermediate calculations. $ /share