Question
Orajel needs to raise money to expand operations, so they've decided to issue 25,000 shares of stock using a Dutch auction IPO. If they receive
Orajel needs to raise money to expand operations, so they've decided to issue 25,000 shares of stock using a Dutch auction IPO. If they receive the following orders, what is highest price at which shares will be sold in the IPO?
| Bidder | Quantity (shares) | Price ($) |
| Investor 1 | 10,000 | 21.00 |
| Investor 2 | 11,000 | 20.75 |
| Investor 3 | 12,000 | 20.50 |
| Investor 4 | 13,000 | 20.25 |
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Investments An Introduction
Authors: Herbert B Mayo
10th Edition
0538452099, 9780538452090
