Merger, Corporate Finance

Assignment Help:
The Chocolate ice cream company and the vanilla ice cream company have agreed to merge and form Fudge Swirl Consolidated.Both companies are exactly alike that 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 merger.
State Probability Value
Rainy 0.1 1 LAC
Warm 0.4 2 LAC
Hot 0.5 4 LAC
Each co. has o/s debt of 2lac.
What are the possible values of the merged company??

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