How to calculate the cumulative demand?

13) What will the offer price of these shares be if Luther is selling 1 million shares? A) S17.00 B) S17.50 C) S17.25 D) S16.75 Answer: C Explanation: C) Number of Cumulative Price (S) Shares Bid Demand S19.50 50,000 50,000 $19.2525.000 75,000 $19.10 25,000 100,000 $19.00 100.000 200,000 S18.75125.000 325.000 S18.50 75,000 400,000 S18.25150.000 550,000 $18.00 240,000 790,000 $17.75 80,000 870,000 S17.50 125.000 995.000 $17.25 150.000 1,145.000 $17.00 100,000 1.245,000 $16.90 60,000 1.305,000 $16.7580,000 1,385,000 $16.50 75.000 1.460,000 $16.25 200.000 1.660,000 By looking at cumulative demand, we see that a cumulative demand of 1 million shares corresponds to a price of S17.25 Diff: 2 Section: 23.2 The Initial Public Offering Skill: Analytical