The management of Mitchell Labs decided to go private in 2002 by buying all 3.40 million of its outstanding shares at $23.60 per share. By 2006, management had restructured the company by selling off the petroleum research division for $10.50 million, the fiber technology division for $8.50 million, and the synthetic products division for $21 million. Because these divisions had been only marginally profitable, Mitchell Labs is a stronger company after the restructuring. Mitchell is now able to concentrate exclusively on contract research and will generate earnings per share of $1.20 this year. Investment bankers have contacted the firm and indicated that if it reentered the public market, the 3.40 million shares it purchased to go private could now be reissued to the public at a P/E ratio of 16 times earnings per share.

a. What was the initial cost to Mitchell Labs to go private? (Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer in millions, not dollars (e.g., $1,230,000 should be entered as "1.23").)

b. What is the total value to the company from (1) the proceeds of the divisions that were sold, as well as (2) the current value of the 3.40 million shares (based on current earnings and an anticipated P/E of 16)? (Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer in millions, not dollars (e.g., $1,230,000 should be entered as "1.23").)