Obama Inc and Osama Inc are competitors with very similar assets and business risks. Both are all equity firms with aftertax cash flows of $12 per year forever. Both have an overall cost of capital of 8%. Obama Inc is thinking of buying Osama Inc . The aftertax cash flow from the merged firm would be $25 per year. Does the merger create synergy? What is value of the Obama Inc. after the merger ? What is V? What is the total value of Osama Inc. to Obama Inc?