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Midway Supply Is Planning on Merging with the Riverton Company

Question 158

Multiple Choice

Midway Supply is planning on merging with the Riverton Company. Midway will pay Riverton's stockholders the current value of their stock in shares of Midway. Midway currently has 3,500
Shares of stock outstanding at a market price of $24 a share. Riverton has 1,200 shares outstanding
At a price of $9 a share. How many shares of stock will be outstanding in the merged firm?


A) 3,890 shares
B) 3,910 shares
C) 3,950 shares
D) 4,025 shares
E) 4,130 shares

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