Raymond Supply, a national hardware chain, is considering purchasing a smaller chain, Strauss & Glazer Parts (SGP). Raymond's analysts project that the merger will result in the following incremental free cash flows, tax shields, and horizon values (in millions):

Year	1	2	3	4
FCF	$2	$3	$4	$7
Unlevered Horizon value				$75
Tax shield	$1	$1	$2	$3
Horizon value of tax shield				$32

Assume that all cash flows occur at the end of the year. SGP is currently financed with 30% debt at a rate of 8%. The acquisition would be made immediately, and if it is undertaken, SGP would retain its current $20 million of debt and issue enough new debt to continue at the 30% target level. The interest rate would remain the same. SGP's pre-merger beta is 1.5, and its post-merger tax rate would be 40%. The risk-free rate is 5% and the market risk premium (=Er_M - r_RF) is 6%.

What is the unlevered cost of equity of SGP?

What is the unlevered value of operations of SGP?

What is the value of tax shield of SGP?