Hastings Corporation is interested in acquiring VandellCorporation. Vandell has 1 million shares outstanding and a targetcapital structure consisting of 30% debt; its beta is 1.30 (givenits target capital structure). Vandell has $10.63 million in debtthat trades at par and pays an 7.6% interest rate. Vandell’s freecash flow (FCF₀) is $2 million per year and is expectedto grow at a constant rate of 4% a year. Both Vandell and Hastingspay a 30% combined federal and state tax rate. The risk-free rateof interest is 7% and the market risk premium is 4%.

Hastings Corporation estimates that if it acquires VandellCorporation, synergies will cause Vandell’s free cash flows to be$2.3 million, $2.7 million, $3.5 million, and $3.96 million atYears 1 through 4, respectively, after which the free cash flowswill grow at a constant 4% rate. Hastings plans to assume Vandell’s$10.63 million in debt (which has an 7.6% interest rate) and raiseadditional debt financing at the time of the acquisition. Hastingsestimates that interest payments will be $1.5 million each year forYears 1, 2, and 3. After Year 3, a target capital structure of 30%debt will be maintained. Interest at Year 4 will be $1.448 million,after which the interest and the tax shield will grow at 4%.

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. Please include step by step.