Suppose Firm A and Firm B have decided to merge. Because the two companies have seasonal sales, the merged firm's return on assets will have a standard deviation of 21 percent per year. Before the merge, Firm A has zero coupon bond issue outstanding with a $10,000 face value that matures in one year. The current market value of the firm's asset is $10,900. The standard deviation of the return on the firm A's assets is 31 percent per year. Firm B also has a zero coupon bond issue outstanding with a face value of $20,000 that matures in one year. The current market value of the firm's assets is $23,100. The standard deviation of the return on the firm B's assets is 38 percent per year. The annual risk free rate is 6 percent year.