Marston Marble Corporation is considering a merger with the Conroy Concrete Company. Conroy is a publicly traded company, and its beta is $1\mathrm{.}20.$ Conroy has been barely profitable, so it has paid an average of only $30\%$ in taxes during the last several years. In addition, it uses little debt; its target ratio is just $30\%,$ with the cost of debt $9\%.$ If the acquisition were made, Marston would operate Conroy as a separate, wholly owned subsidiary. Marston would pay taxes on a consolidated basis, and the tax rate would therefore increase to $35\%.$ Marston also would increase the debt capitalization in the Conroy subsidiary to wd $=35\%,$ for a total of $$18\mathrm{.}22$ million in debt by the end of Year $4,$ and pay $9\mathrm{.}5\%$ on the debt. Marston's acquisition department estimates that Conroy, if acquired, would generate the following free cash flows and interest expenses $($in millions of dollars$)$ in Years $1-5$:

In Year $5,$ Conroy's interest expense would be based on its beginning$-$of$-$year $($that is$,$ the end$-$of$-$Year$-4)$ debt, and in subsequent years both interest expense and free cash flows are projected to grow at a rate of $5\%.$ These cash flows include all acquisition effects. Marston's cost of equity is $10\mathrm{.}8\%,$ its beta is $1\mathrm{.}2,$ and its cost of debt is $9\mathrm{.}5\%.$ The risk$-$free rate is $6\%,$ and the market risk premium is $4\mathrm{.}0\%.$ Use the compressed APV model to answer the following questions.

$1.$

What is the value of Conroy's unlevered operations? $($in millions$)$ Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $$1\mathrm{.}23$ million should be entered as $1\mathrm{.}23,$ not $1,230,000.$ Round your answer to two decimal places.

$2.$

What is the value of Conroy's tax shields under the proposed merger and financing arrangements?$($in millions$)$ Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $$1\mathrm{.}23$ million should be entered as $1\mathrm{.}23,$ not $1,230,000.$ Round your answer to two decimal places.

$3.$

What is the dollar value of Conroy's operations? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $$1\mathrm{.}23$ million should be entered as $1\mathrm{.}23,$ not $1,230,000.$ Round your answer to two decimal places.

$4.$

If Conroy has $$8$ million in debt outstanding, how much would Marston be willing to pay for Conroy?$($in millions$)$ Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $$1\mathrm{.}23$ million should be entered as $1\mathrm{.}23,$ not $1,230,000.$ Round your answer to two decimal places.