• Consider the following two merger candidates. The merger is for diversification purposes only with no synergies involved. Risk-free rate is 4%. Company A Company B Market value of assets $900 $500 Face value of zero coupon debt $900 $500 Debt maturity 4 years 4 years Asset return standard deviation 50% 50% The asset return standard deviation for the combined firm is 20%. How much more value will debtholders collectively receive after the merge(keep two decimal places)?