A national hardware chain is considering purchasing a smaller chain, SGP. Analysts project that the merger will result in the following incremental free cash flows, tax shields, and horizon values: Year 1 2 3 4 Free cash flow $1 $3 $3 7 $7 Unlevered horizon value 75 Tax shield 1 1 2 3 Horizon value of tax shield 32 Assume that all cash flows occur at the end of the year. SGP is currently financed with 30% debit at a rate of 10%. The acquisition would be made immediately, and if it is undertaken, SGP would retain its current $15 million of debt and issue enough new debt to continue at the 30% target level. The interest rate would remain the same. SGP's pre-merger beta is 2.0, and its post-merger tax rate would be 34%. The risk-free rate is 8% and the market risk premium is 4% What is the pre-merger cost of equity? What is the unlevered cost of equity? Unlevered value of operations, in millions? Value of tax shields, in milions? Value of SGP to the larger scorer in millions 61.98