Chapter 29 Connect Homework A Saved Help Save & Exit Submit Check my work 6 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: 1 points State Probability Bentley Rolls Boom .80 $298,000 $268,000 Recession .20 114,000 84,000 pBook Bentley currently has a bond issue outstanding with a face value of $129,000. Rolls is an all-equity company Print a. What is the value of each company before the merger? (Do not round Intermediate calculations and round your answers to the nearest whole number, e.g., 32.) References Value of Bentley Value of Rolls Check my work 6 b. What are the values of each company's debt and equity before the merger? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to the nearest whole number, e.g. 32.) 1 points eBook Equity of Bentley Debt of Bentley Equity of Rolls Debt of Rolls Print References c. If the companies continue to operate separately, what are the total value of the companies, the total value of the equity, and the total value of the debt? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Value of companies Value of equity Value of debt Check my work 6 d-1. What would be the value of the merged company? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) 1 points Merged company value Print d-2. What would be the value of the merged company's debt and equity? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) References Value of debt Value of equity e-1. How much would shareholders gain or lose in the merger? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32. Enter a gain as a positive number and a loss as a negative number.) Shareholders' gain or loss e-2. How much would bondholders gain or lose in the merger? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Enter a gain as a positive number and a loss as a negative number.) Bondholders' gain or loss 6 Chapter 29 Connect Homework A Saved Help Save & Exit Submit Check my work 6 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: 1 points State Probability Bentley Rolls Boom .80 $298,000 $268,000 Recession .20 114,000 84,000 pBook Bentley currently has a bond issue outstanding with a face value of $129,000. Rolls is an all-equity company Print a. What is the value of each company before the merger? (Do not round Intermediate calculations and round your answers to the nearest whole number, e.g., 32.) References Value of Bentley Value of Rolls Check my work 6 b. What are the values of each company's debt and equity before the merger? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to the nearest whole number, e.g. 32.) 1 points eBook Equity of Bentley Debt of Bentley Equity of Rolls Debt of Rolls Print References c. If the companies continue to operate separately, what are the total value of the companies, the total value of the equity, and the total value of the debt? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Value of companies Value of equity Value of debt Check my work 6 d-1. What would be the value of the merged company? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) 1 points Merged company value Print d-2. What would be the value of the merged company's debt and equity? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) References Value of debt Value of equity e-1. How much would shareholders gain or lose in the merger? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32. Enter a gain as a positive number and a loss as a negative number.) Shareholders' gain or loss e-2. How much would bondholders gain or lose in the merger? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Enter a gain as a positive number and a loss as a negative number.) Bondholders' gain or loss 6
