1. The owner of Gator Airlines wishes to take her stock public for the first time by selling 3 million shares. The underwriter determines that the true value will be $15 with probability. 4 and $8 with probability .6. There are a group of uninformed investors who are willing to buy 6 million shares as long they pay no more than the expected true value. They also assess the probability of the true value of the shares being $15 with probability .4 and $8 with probability .6. There is a group of informed investors who always know whether the true value is $15 or $8. They are willing to order 2 million shares if the offer price is less than the true value. (a) Calculate the highest offer price at which the entire issue will always sell.