Correctly answer each part of question 5 with the answer choices provided.

5. The market for common stock Aa Aa Type of offering When a company issues stock or shares to the public for the first time, it is referred to as an initial public offering a secondary offering Initial Public Offering performance When the demand for an initial public offering (IPO) of securities is less than the number of securities issued, the offering is deemed to be: O Oversubscribed Undersubscribed WAC Inc. is going public and issuing 500,000 shares of common stock. The capital raised in the IPO will fund the company's proposed expansion. A Dutch auction is used to allocate shares in the WAC IPO. The following table shows the number of shares requested by potential investors in each row. Bids Bidder # 1 Bidder # 2 Bidder # 3 Bidder # 4 Bidder # 5 Bidder # 6 Number of Shares Requested 50,000 100,000 150,000 200,000 250,000 300,000 Price per Share $65 $63 $61 $59 $57 $55 What should be the firm's IPO offer price? O $61 O $59 $56 $54