Problem # 1 CNR is listed on the stock exchange thanks to an open price offer (Dutch Auction). The investment bank in charge of the operation received the following buy orders:

a) What will be the IPO price if the offer is for 1 million CNR shares?

b) How much CNR will raise from its IPO if the offer is for 1.25 million shares (instead of 1 million shares)?

Share price ($) 39.0 38.5 38.2 38.0 37.5 37.0 36.5 36.0 35.5 35.0 34.5 34.0 33.8 33.5 33.0 32.5 Number of shares requested 50,000 25,000 25,000 100,000 125,000 75,000 150,000 240,000 80,000 125,000 130,000 150,000 125,000 80,000 75,000 200,000