Consider the following two merger candidates. The merger is for diversification purposes only with no synergies involved. Risk-free rate is 4%. Company A Market value of assets $900 Face value of zero coupon debt $900 Debt maturity 4 years Asset return standard deviation 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)? Your Answer: Answer Compan $1000 $1000 4 years 50%