Intrinsic Value of Merger target

Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has $1\mathrm{.}5$ million shares outstanding and a target capital structure consisting of $30\%$ debt; its beta is $1\mathrm{.}25($given its target capital structure$).$ Vandell has $$10\mathrm{.}35$ million in debt that trades at par and pays a $7\%$ interest rate. Vandell$$s free cash flow $($FCF$0)$ is $$1$ million per year and is expected to grow at a constant rate of $6\%$ a year. Vandell pays a $30\%$ combined federal$-$plus$-$state tax rate, the same rate paid by Hastings. The risk$-$free rate of interest is $5\%,$ and the market risk premium is $4\%.$ Hasting$$s first step is to estimate the current intrinsic value of Vandell.

What is Vandell$$s cost of equity? Do not round intermediate calculations. Round your answer to two decimal places.

$10$

$\%$

What is its weighted average cost of capital? Do not round intermediate calculations. Round your answer to two decimal places.

$\%$

What is Vandell$$s intrinsic value of operations? $($Hint: Use the free cash flow corporate valuation model.$)$ Enter your answer in millions. For example, an answer of $$1\mathrm{.}23$ million should be entered as $1\mathrm{.}23,$ not $1,230,000.$ Do not round intermediate calculations. Round your answer to two decimal places.

$

million

Based on this analysis, what is the minimum stock price that Vandell$$s shareholders should accept? Do not round intermediate calculations. Round your answer to the nearest cent.

$

$/$ share