Question
Firm A Firm B Value of the firm 100 155 Face Value Debt 80 70 Duration of Debt 10 12 Volatility 40% 60% Correlation cash
Firm A Firm B Value of the firm 100 155 Face Value Debt 80 70 Duration of Debt 10 12 Volatility 40% 60% Correlation cash flows 0.7 Riskfree rate 2% 37. What is the value of Firm A equity? 39. What is the debt value of merged firm? 40. What is duration of debt of merged firm? 41. What is the volatility of merged firm? 42. What is value of the merged firms equity?
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The Laymans Guide To Managing Your Investments
Authors: Thomas Dunleavy
1st Edition
979-8763592214
