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Golden s is merging with Rosa s . Golden s has debt with a face value of $ 8 0 and Rosa s has debt
Goldens is merging with Rosas Goldens has debt with a face value of $ and Rosas has debt with a face value of $ The premerger values of the firms given two economic states with equal probabilities of occurrence are as follows:
Premerger Values: Stage Stage Market Value
Goldens
Assets $ $ $
Debt
Equity
Rosas
Assets $ $ $
Debt
Equity
If the merger provides no synergy, and if Rosas stockholders receive stock in the combined firm in an amount equal to the standalone value of Rosas what will be the combined gain or loss to the bondholders of these two firms?
Multiple Choice
$
$
$
$
$
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