10. Lube & Auto is merging with Gianni Cosmetics and the deal characteristics are presented below: Gianni Cosmetics Firm Value Debt Face Value Debt Maturity St. Dev. Firm Value Share of assets in survivor Correlation b CFs Option Price Values Equity Value in Firm Debt Value in Firm Lube & Auto $100 $80 10 40.00% 0.4 0.1 $75.90 $24.10 $150 $50 10 50.00% 0.6 $134.50 $15.50 Using the file "Topic #3 (Co-Insurance Example).xlsx" posted on Canvas: (a) Please calculate the value of equity and the value of debt for the combined firm. (b) Please calculate the debt yield (Hint: please use the embedded Excel option value calculator in that Excel file, following the steps we used in class). 10. Lube & Auto is merging with Gianni Cosmetics and the deal characteristics are presented below: Gianni Cosmetics Firm Value Debt Face Value Debt Maturity St. Dev. Firm Value Share of assets in survivor Correlation b CFs Option Price Values Equity Value in Firm Debt Value in Firm Lube & Auto $100 $80 10 40.00% 0.4 0.1 $75.90 $24.10 $150 $50 10 50.00% 0.6 $134.50 $15.50 Using the file "Topic #3 (Co-Insurance Example).xlsx" posted on Canvas: (a) Please calculate the value of equity and the value of debt for the combined firm. (b) Please calculate the debt yield (Hint: please use the embedded Excel option value calculator in that Excel file, following the steps we used in class)