Question: 5 Problem 2 9 - 1 6 Mergers and Shareholder Value 1 5 The Chocolate lce Cream Company and the Vanilla ke Cream Company have

5
Problem 29-16 Mergers and Shareholder Value
15
The Chocolate lce Cream Company and the Vanilla ke Cream Company have agreed to
poents merge and form Fudge Swirl Consolidated. Both componies are exactly allke except that they are located in different towns. The end-of-period value of each firm is determined by the weather, as shown below. There will be no synergy to the merget.
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Pefferences
\table[[State,Probablity,Value],[Rainy,2,$330,000
5 Problem 2 9 - 1 6 Mergers and Shareholder Value

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