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Problem 29-14 Mergers and Shareholder Value Bentley Corporation and Rolls Manufacturing are considering a merger. The possible states of the economy and each company's value

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Problem 29-14 Mergers and Shareholder Value Bentley Corporation and Rolls Manufacturing are considering a merger. The possible states of the economy and each company's value in that state are shown here: Bentley currently has a bond issue outstanding with a face value of $144,000. Rolls is an all-equity company. a. What is the value of each company before the merger? (Do not round Intermedlate calculations and round your answers to the nearest whole number, e.g., 32.) b. What are the values of each company's debt and equity before the merger? (Leave no cells blank - be certaln to enter "O" wherever required. Do not round intermedlate calculations and round your answers to the nearest whole number, e.g., 32.) c. If the companies continue to operate separately, what are the total value of the companies, the total value of the equity, and the total value of the debt? (Do not round intermedlate calculations and round your answers to the nearest whole number, e.g., 32.) d-2. What would be the value of the merged company's debt and equity? (Do not round Intermediate calculations and round your answers to the nearest whole number, e.g. 32.) d-1. What would be the value of the merged company? (Do not round intermedlate calculations and round your answer to the nearest whole number, e.g., 32.) e-1. How much would shareholders gain or lose in the merger? (Do not round Intermedlate calculations and round your answer to the nearest whole number, e.g., 32. Enter a gain as a positive number and a loss as a negative number.) e-2. How much would bondholders gain or lose in the merger? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g., 32. Enter a gain as a positive number and a loss as a negative number.)

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