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Level 1 is 5 times stats on best equipment
Level 2 is 6 times stats on best equipment
Level 3 is 7 times stats on best equipment
Level 4 is 8 times stats on best equipment
Level 5 is 9 times stats on best equipment
Level 6 is 10 times stats on best equipment
A mercenary uses your best equipment and weapons available. A dead mercenary does not count for anything. If you are attacking somebody with mercenaries, kill the mercenaries first to weaken that player. You can also use the Merc Repellant, but that only stops one at a time. So if the other player has 5 mercenaries you will need 5 Merc Repellants.
