Bentley Corp. and Rolls Manufacturing are considering a merger. The possible states of the economy and each company's value in that state are shown here:

State Probability Bentley Corp. Rolls Manufacturing

Boom $0\mathrm{.}75$ $$800,000$ $$720,000$

Recession $0\mathrm{.}25$ $$190,000$ $$90,000$

Bentley currently has a bond issue outstanding with a face value of $$134,000.$ Rolls is an all$-$equity company.

a$.$ What is the value of each company's before the merger? $($Enter the answer in dollars, not millions of dollars. Omit $"$$$"$ sign in your response.$)$

Value of Bentley: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Value of Rolls: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

b$.$ What are the values of each company$$s debt and equity before the merger? $($Enter the answer in dollars, not millions of dollars. Omit $"$$$"$ sign in your response. Leave no cells blank $$ be certain to enter $"0"$ wherever required.$)$

Value of the Rolls equity: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Value of the Rolls debt: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Value of the Bentley$$s equity: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Value of the Bentley$$s debt: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

c$.$ If the companies continue to operate separately, what are the total values of the companies, the equity, and the debt? $($Enter the answer in dollars, not millions of dollars. Omit $"$$$"$ sign in your response.$)$

Total value: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Total value of the equity: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Total value of the debt: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

d$-1.$ What would be the value of the merged company? $($Enter the answer in dollars, not millions of dollars. Omit $"$$$"$ sign in your response.$)$

Merged company value: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

d$-2.$ What would be the value of the merged company's debt and equity? $($Enter the answer in dollars, not millions of dollars. Omit $"$$$"$ sign in your response.$)$

Merged equity value: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Merged debt value: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

e$-1.$ Is there a transfer of wealth in this case?

O Yes

O No

e$-2.$ Suppose that the face value of Bentley$$s debt were $$99,000.$ Would this affect the transfer of wealth?

O Yes

O No