Three Waters Co$.$ is considering an acquisition of Zebra Engineering Corp. $($ZEC$),$ and estimates that acquiring ZEC will result in incremental after$-$tax net cash flows in years $1-3$ of $$19\mathrm{.}00$ million, $$28\mathrm{.}50$ million, and $$34\mathrm{.}20$ million, respectively.

After the first three years, the incremental cash flows contributed by the ZEC acquisition are expected to grow at a constant rate of $3\%$ per year. Three Waters's current beta is $0\mathrm{.}40,$ but its post$-$merger beta is expected to be $0\mathrm{.}52.$ The risk$-$free rate is $3\mathrm{.}5\%,$ and the market risk premium is $5\mathrm{.}60\%.$

Based on this information, complete the following table by selecting the appropriate values $($Note: Do not round intermediate calculations, but round your answers to two decimal places$)$:

Value

Post$-$merger cost of equity

Projected value of the cash flows at the end of three years

The value of Zebra Engineering Corp. $($ZEC$)\text{'}$s contribution to Three Waters Co$.$

Zebra Engineering Corp. $($ZEC$)$ has $4$ million shares of common stock outstanding. What is the largest tender offer Three Waters Co$.$ should make on each of Zebra Engineering Corp. $($ZEC$)\text{'}$s shares?

$$185\mathrm{.}64$

$$232\mathrm{.}05$

$$278\mathrm{.}46$