Persuit (June 11)

in the model answer, once Fodder Co’s debt obligations and the equity shareholders have been paid, the benefit to Pursuit Co’s shareholders reduces to approximately $52,000 (see Appendix), which is minimal. Question) This is caculated as Synergy benefits less premium, however, why they mention about the part in which "once Fodder Co’s debt obligations and the equity shareholders have been paid." Could please clarify that part? Is it simply because WACC are used for producing the firm value and individual comapnies values? Thank you very much.