Hastings Corporation is interested in scquiring Vandell Corporaton. Vandel has 1.5 malon shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.40 (olven its target capital structure). Vandell has $11.88 million in debt that trades at par and pavs a 9$ interest rate. Vandelrs current free cash fiow (FCFo) is $2 million per Year and is expected to grow at a constant rate of 5% o year. Vandell pays a 25% combined federal-plus-state tax rate, the same rate paid by Hastings, The risk-free rate of ioterest is 7%, and the market risk premium is 746 . Hasting s first step is to estimate the current intrinkc value of Vandell. a. What is vandeirs cost of equity? Do not round intermediate calculations. Round your answer to two decimal plocks. b. What is its weighted average cost of captain Do not reund intermediate calculations. Aound your answer to two decimal places: c. What is vandells incrinsic value of operations? (phat: Use the free cash flow corporate valustien model since the capital structure isnt changing) thter vour answer in miltions. For example, an answer of $1.23 mvition should be entered as 1.23, not 1,230,000, Do not round intermedate calculations. Round your answer to two decimai places. 4 mitiion d. Based oci this analvis, what is the minimum stock price that Vandell's shareholders should accept? Do not round intermediate calculations. Rlound your answer to the nearent cent: 5 1shere