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The CEO of Company A just sent a letter to the stockholders announcing that she is planning to merge with Company B. The main result
The CEO of Company A just sent a letter to the stockholders announcing that she is planning to merge with Company B. The main result of such merger will be a much more stable (less variable) stream of cash from the resulting firm. You hold risky debt previously issued by company A. Should you be happy, unhappy or indifferent about the upcoming merger? Why?
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