Question
Suppose a firm wants to sell shares to new investors in an IPO process using the dutch auction method. The firm asks an investment bank
Suppose a firm wants to sell shares to new investors in an IPO process using the dutch auction method. The firm asks an investment bank to get investor bids to sell a total of 950,000 shares. The bids received are provided in the table below.
| Bids | # of Shares | Share Price |
| Bidder #1 | 50,000 | $57 |
| Bidder #2 | 100,000 | $55 |
| Bidder #3 | 150,000 | $53 |
| Bidder #4 | 200,000 | $51 |
| Bidder #5 | 250,000 | $49 |
| Bidder #6 | 300,000 | $47 |
At what price, all shares will be allotted in the IPO process? Enter your answer in the following format: $12
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Financial Market Analysis And Behaviour The Adaptive Preference Hypothesis
Authors: Emil Dinga, Camelia Oprean Stan, Cristina Roxana Tinisescu, Vasile Brctian, Gabriela Mariana Ionescu
1st Edition
1032255161, 1000609731, 9781032255163, 9781000609738
