Question
Eastern Electric is offering 2,500 shares of stock in a Dutch auction. The bids include: 600 shares at $27 a share, 1,500 shares at $26,
| Eastern Electric is offering 2,500 shares of stock in a Dutch auction. The bids include: 600 shares at $27 a share, 1,500 shares at $26, 3,000 shares at $25, and 2,500 shares at $24 a share.How much cash will Eastern Electric receive from selling these shares? Ignore all transaction and flotation costs. |
| $67,500 |
| $65,200 |
| $60,000 |
| $62,500 |
| $63,000 |
The answer is not $60,000.
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Fixed Income Markets And Their Derivatives
Authors: Suresh Sundaresan
3rd Edition
0123850517, 978-0123704719
