Firm A seeks to acquire ( previously owned) firm T whose ultimate dollar value is uncertain because of its possible liability for the past production…

Firm A seeks to acquire ( previously owned) firm T whose ultimate dollar value is uncertain because of its possible liability for the past production of hazardous waste. The table shows A’s and T’s respective value (in $ millions) for the firm conditional on whether the firm is found to be liable. None that A and T have different contingent values and different probability assessments ( shown in parentheses) as to T’s liability. Both firms are risk neutral.
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