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The Chocclate ke Cream Company and the Vanila ke Cream Company have asreed to merge and form Fudge Swirl Consolidoted. Both compsnios are exoctly ollece
The Chocclate ke Cream Company and the Vanila ke Cream Company have asreed to merge and form Fudge Swirl Consolidoted. Both compsnios are exoctly ollece except that they are lacated in different towns. The end-of-period value of each firm is determinec by the wosther, os shown below. There will be no synergy to the mergef. The weather conditions in each town are incependent of those in the other. Fathermore, each compery hes en outstancing debt caim of \$BO,000. Assume thet no premiums are peid in the merger. What are the possiole velues of the combined company? (Do not round intermediate a. calculations and round your answers to the nearest whole number, e.g., 32. ) What are the possible values of end-of-penod ceot and stock atter the merger? (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) How much do stockholders and bondholders each gain or lose if the merger is c. undertaken? (A loss should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
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