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After a long period of preparations, Leamington Inc. has finally decided to go public with an IPO. Following the new trend in recent successful
After a long period of preparations, Leamington Inc. has finally decided to go public with an IPO. Following the new trend in recent successful IPOs, the company chooses the "Dutch Auction" as the method for its IPO. Leamington Inc. plans to offer 500 million shares. After completing the Dutch Auction, the company obtains the following bids and prices: Bidders A B D E F Bids (in million) 150 50 200 100 120 180 (a) At what price will one Leamington share be sold to investors? (b) How many shares will each investor get? Prices 18 25 5 10 8 9 [3 marks] [10 marks]
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a To determine the price at which one Leamington share will be sold to investors in the Dutch Auction we need to find the price that clears the market ...
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Business Communication Essentials a skill based approach
Authors: Courtland L. Bovee, John V. Thill
6th edition
978-0132971324
