Evaluate the financial impact of a potential merger between Company M and Company N based on the following information:

• Company M:
  • Net Income: $1,000,000
  • Total Assets: $5,000,000
  • Market Value of Equity: $7,000,000
• Company N:
  • Net Income: $500,000
  • Total Assets: $3,000,000
  • Market Value of Equity: $4,000,000

Analyze the financial impact of the potential merger between Company M and Company N using the provided data.