Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1.5 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.35 (given its target capital structure). Vandell has $10.45 million in debt that trades at par and pays a 7.4% interest rate. Vandells free cash flow (FCF0) is $1 million per year and is expected to grow at a constant rate of 4% a year. Vandell pays a 30% combined federal-plus-state tax rate, the same rate paid by Hastings. The risk-free rate of interest is 3%, and the market risk premium is 5%. Hastings first step is to estimate the current intrinsic value of Vandell