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please help Bentiey Corp. and Rolls Manufacturing are considering a merger. The possible states of the economy and each company's value in thot state are
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Bentiey Corp. and Rolls Manufacturing are considering a merger. The possible states of the economy and each company's value in thot state are shown here: Bentiey currently has a bond issue outstanding with a face value of $144,000. Rolls is an all-equity company's. a. What is the value of each company's before the merger? (Enter the answer in dollars, not millions of dollars. Omit " $ " sign in your response.) b. What are the values of each company's debt and equity before the merger? (Enter the answer in dollars, not millions of dollars. Leave no cells blank-be certain to enter " 0 " wherever required. Omit " $ " sign in your response.) c. If the companies continue to operate separately, what are the total values of the companies, the equity, and the debt? (Enter the answer in dollars, not millions of dollars. Omit "\$" sign in your response.) d-2. What would be the value of the merged company's debt and equity? (Enter the answer in dollars, not millions of dollars. Omit "5" sign in your response.) e-1. Is there a transfer of wealth in this case? No Yes e-2. This part of the question is not part of your Connect assignment. t Suppose that the face value of Bentiey's debt were $109,000. Would this affect the transfer of wealth Step by Step Solution
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