Intrinsic Value of Merger target 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 1.20 (given its target capital structure). Vandell has $8.48 million in debt that trades at par and pays a 7.2% 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 7%, and the market risk premium is 6%. Hastings first step is to estimate the current intrinsic value of Vandell.

Can you please use the numbers provided and go in detail with the WACC please?