Suppose Sunburn Sunscreen and Frostbite Thermalwear have decided to merge. Because the two companies have seasonal sales, the combined firm's return on assets will have a standard deviation of 18 percent per year, and the annual risk-free rate is 5 percent per year, compounded continuously a-1 What is the combined value of equity in the two existing companies? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Equity a-2 What is the combined value of debt in the two existing companies? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16,) Debt b-1 What is the value of the new firm's equity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g, 32.16.) Equity b-2 What is the value of the new firm's debt? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Debt c 1 what was the gain or loss for shareholders? A loss should be indicated by a minus sign Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.1 27 MacBook Air F2 F3 F5 F6 F8 3 4 8 Suppose Sunburn Sunscreen and Frostbite Thermalwear have decided to merge. Because the two companies have seasonal sales, the combined firm's return on assets will have a standard deviation of 18 percent per year, and the annual risk-free rate is 5 percent per year, compounded continuously a-1 What is the combined value of equity in the two existing companies? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Equity a-2 What is the combined value of debt in the two existing companies? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16,) Debt b-1 What is the value of the new firm's equity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g, 32.16.) Equity b-2 What is the value of the new firm's debt? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Debt c 1 what was the gain or loss for shareholders? A loss should be indicated by a minus sign Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.1 27 MacBook Air F2 F3 F5 F6 F8 3 4 8