Additionally, question c is:How much do stockholders and bondholders each gain or lose if the merger is undertaken? 1. Bondholder gain/loss: 2. Stockholder gain/loss:

The Chocolate Ice Cream Company and the Vanilla Ice Cream Company merge and form Fudge Swirl Consolidated. Both companies are exactly al they are located in different towns. The end-of-period value of each firm 1: by the weather, as shown below. There will be no synergy to the merger. State Probability Value Rainy $ 380,000 Warm in wh 560,000 Hot 1,070,000 The weather conditions in each town are independent of those In the othe Furthermore, each company has an outstanding debt claim of $560,000. no premiums are paid in the merger. What are the possible values of the combined company? (Do not round " calculations and round your answers to the nearest whole number, e Possible states Joint Value Rain-Rain Rain-Warm Rain-Hot Warm-Warm Warm-Hot Hot-Hot What are the possible values of end-of-perlod debt and stock after the b. (Leave no cells blank - be certain to enter "O" wherever required. Do "Intermediate calculations and round your answers to the nearest wh e.g., 32.) Debt Value Stock Value Rain-Rain Rain-Warm Rain-Hot