Golden's is merging with Rosa's. Golden's has debt with a face value of $80 and Rosa's has debt with a face value of $50. The premerger values of the firms given two economic states with equal probabilities of occurrence are as follows: Premerger Values: Stage 1 Stage 2 Market Value Golden's Assets Debt Equity Rosa's Assets Debt Equity $130 80 50 $50 50 0 $30 $90 30 50 0 40 $90 65 25 $60 40 20 If the merger provides no synergy, and if Rosa's stockholders receive stock in the combined firm in an amount equal to the standalone value of Rosa's, what will be the combined gain or loss to the bondholders of these two firms? $10 $5 -$5 $0 $25

Golden's is merging with Rosa's. Golden's has debt with a face value of $80 and Rosa's has debt with a face value of $50. The premerger values of the firms given two economic states with equal probabilities of occurrence are as follows: Value If the merger provides no synergy, and if Rosa's stockholders receive stock in the combined firm in an amount equal to the standalone value of Rosa's, what will be the combined gain or loss to the bondholders of these two firms? $10 $5 $5 $0 $25