Hastings Corporation is interested in acquiring VandellCorporation. Vandell has 1 million shares outstanding and a targetcapital structure consisting of 30% debt; its beta is 1.55 (givenits target capital structure). Vandell has $8.71 million in debtthat trades at par and pays an 7.7% interest rate. Vandell’s freecash flow (FCF0) is $1 million per year and is expected to grow ata constant rate of 5% a year. Both Vandell and Hastings pay a 40%combined federal and state tax rate. The risk-free rate of interestis 3% and the market risk premium is 7%. Hastings Corporationestimates that if it acquires Vandell Corporation, synergies willcause Vandell’s free cash flows to be $2.3 million, $3.0 million,$3.4 million, and $3.73 million at Years 1 through 4, respectively,after which the free cash flows will grow at a constant 5% rate.Hastings plans to assume Vandell’s $8.71 million in debt (which hasan 7.7% interest rate) and raise additional debt financing at thetime of the acquisition. Hastings estimates that interest paymentswill be $1.5 million each year for Years 1, 2, and 3. After Year 3,a target capital structure of 30% debt will be maintained. Interestat Year 4 will be $1.440 million, after which the interest and thetax shield will grow at 5%.

Indicate the range of possible prices that Hastings could bidfor each share of Vandell common stock in an acquisition. Roundyour answers to the nearest cent. Do not round intermediatecalculations. The bid for each share should range between $ pershare and $ per share.