Merger Valuation Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.60 (given its target capital structure). Vandell's debt interest rate is 7.5%. Assume that the risk-free rate of interest is 6% and the market risk premium is 5%. BothVandell and Hastings face a 35% tax rate. Hastings Corporation estimates that if it acquires Vandell Corporation, synergies will cause Vandell's free cash flows to be $2.3 million, $2.8 million, $3.3 million, and $3.96 million at Years 1 through 4, respectively, after which the free cash flows will grow at a constant 6% rate. Hastings plans to assume Vandell's $9.72 million in debt (whichhas an 7.5% interest rate) and raise additional debt financing at the time of the acquisition. Hastings estimates that interest payments will be $1.6 million each year forYears 1, 2, and 3. After Year 3, a target capital structure of 30% debt will be maintained. Interest at Year 4 will be $1, 451 million, after which the interest and the taxshield will grow at 6%. What is Vandell's pre-acquisition levered cost of equity? What is its unlevered cost of equity? Do not round intermediate calculations. Pre-acquisition levered cost of equity: ____ 14 % Unlevered cost of equity: ____ 12.05 % What is the intrinsic unlevered value of operations at t = 0 (assuming the synergies are realized)? Round your answer to the nearest cent. Do not round intermediate calculations. $_____ What is the value of the tax shields at t = 0? Do not round intermediate calculations. $_____ million What is the total intrinsic value of operations at t = 0? What is the intrinsic value of Vandell's equity to Hastings? What is Vandell's intrinsic stock price per share? Do not round intermediate calculations. Value of operations: $_____ million Equity value to acquirer: $_____ million Intrinsic value per share of existing shares to acquirer: $ $_____/share