****THIS IS A FOUR PART QUESTION AND DOES NOT GO AGINST CHEGG RULES TO ANSWER ALL FOUR. IF YOU CAN NOT ANSWER ALL FOUR CORRECTLY PLEASE LEAVE THE QUESTION FOR ANOTHER EXPERT. THX IN ADVANCE!****

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 13 of $19.00 million, $28.50 million, and $34.20 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 Waterss current beta is 0.40, but its post-merger beta is expected to be 0.52. The risk-free rate is 3.5%, and the market risk premium is 5.60%.

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)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)s shares?

$232.05

$278.46

$185.64