Tako Pictures Inc. is considering an acquisition of Keedsler Motors Co., and estimates that acquiring keedsler will result in incremental after-tax net cash flows in years 1-3 of $7.0 million, $10.5 million, and $12.6 million, respectively. After the first three years, the incremental cash flows contributed by the Keedsler acquisition are expected to grow at a constant rate of 5% per year. Tako's current beta is 1.60, but its post-merger beta is expected to be 2.08. The risk-free rate is 4%, and the market risk premium is 6.10%. Based on this information, complete the following table by selecting the appropriate values: Value 16.69% Post-merger cost of equity Projected value of the cash flows at the end of three years The value of Keedsler Motors Co.'s contribution to Tako Pictures Inc. Keedsler Motors Co. has 6 million shares of common stock outstanding. What is the largest tender offer Tako Pictures Inc. should make on each of Keedsler Motors Co.'s shares? $18.57 $18.58 $12.38 $15.48