Question
Roundtree Software is going public using an auction IPO. The firm has received the following bids: PRICE ($) NUMBER OF SHARES 14.00 120,000 13.80 280,000
Roundtree Software is going public using an auction IPO. The firm has received the following bids:
| PRICE ($) | NUMBER OF SHARES |
| 14.00 | 120,000 |
| 13.80 | 280,000 |
| 13.60 | 520,000 |
| 13.40 | 1,200,000 |
| 13.20 | 1,200,000 |
| 13.00 | 800,000 |
| 12.80 | 420,000 |
Assuming Roundtree would like to sell 2.12 million shares in itsIPO, what will be the winning auction offerprice?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
