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The FewerSearches.Net is using a Dutch auction to do an IPO of its stock. Ten million shares are to be issued. The chart below lists
The FewerSearches.Net is using a Dutch auction to do an IPO of its stock. Ten million shares are to be issued. The chart below lists the bids and number of shares at each bid price:
Investor | Bid price per share ($) | Aggregate number of shares bid (million) |
A | 70 | 2 |
B | 60 | 1 |
C | 55 | 3 |
D | 54 | 2 |
E | 50 | 1 |
F | 49 | 2 |
G | 44 | 3 |
H | 42 | 3 |
I | 41 | 4 |
J | 40 | 3 |
K | 33 | 2 |
L | 28 | 4 |
M | 20 | 4 |
N | 14 | 7 |
a. Who are the winning bidders? b. How much will each winning bidder pay for a share of FewerSearches.Net? c. How much of the security will be allocated to each winning bidder
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