Goodday is merging with Baker, Inc. Goodday has debt with a face value of $80 and Baker has debt with a face value of $40. The pre-merger values of the firms given two economic states with equal probabilities of occurrence are as follows:

What will be the gain or loss to the current shareholders of Goodday if the merger provides no synergy?

		$10
		$0
		-$5
		$5
		$10

Goodday is merging with Baker, Inc. Goodday has debt with a face value of $80 and Baker has debt with a face value of $40. The pre merger values of the firms given the economic states with equal probabilities of occurrence are as follows: Market Value Economic State 1 $160 80 Economic State 2 $40 Values before merger: Goodday: Debt Equity Baker, Inc.: Debt Equity What will be the gain or loss to the current shareholders of Goodday if the merger provides no synergy? Goodday is merging with Baker, Inc. Goodday has debt with a face value of $80 and Baker has debt with a face vall states with equal probabilities of occurrence are as follows: Economic State 2 $40 Market Value $100 Values before merger: Goodday: Debt Equity in Baker, Inc.: Debt Equity the Economic State 1 $160 30 80 $20 20 o 40 $80 20 What will be the gain or loss to the current shareholders of Goodday if the merger provides no synergy? -510 $0 $5 $10 MacBook Pro