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please help find solution Consider the following two merger candidates. The merger is for diversification purposes only with no synergies involved. Risk-free rate is 4%.

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Consider the following two merger candidates. The merger is for diversification purposes only with no synergies involved. Risk-free rate is 4%. Company A Market value of assets $800 Face value of zero coupon debt $800 Debt maturity 4 years Asset return standard deviation 50% The asset return standard deviation for the combined firm is 20%. How much more value will debtholders collectively receive after the merge(keep two decimal places)? Company A Company B $800$8004years50%$700$7004years50% Consider the following two merger candidates. The merger is for diversification purposes only with no synergies involved. Risk-free rate is 4%. Company A Market value of assets $800 Face value of zero coupon debt $800 Debt maturity 4 years Asset return standard deviation 50% The asset return standard deviation for the combined firm is 20%. How much more value will debtholders collectively receive after the merge(keep two decimal places)? Company A Company B $800$8004years50%$700$7004years50%

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