This company uses the Dutch auction system to sell its IPO. It wanted to sell 10 million shares and received the following bids from investors.

Bidder Bid Shares

1 $40 2 million

2 $37 7 million

3 $36 2 million

4 $34 10 million

16. Which of the following statements is correct?

A Every bidder received some shares.

B Bidder #4 received 1 million shares

C Every successful bidder paid the same price of $36.50

D All of the above are incorrect.

17.What price was charged from the successful bidders?

A.$40

B.$37

C.$36.50

D.$36

18.If the total IPO costs amounted to 10%, what proceeds did the firm receive after all expenses?

A $324 million

B. $360 million

C $400 million

D. None of the above.

19. Assuming shares were allocated on pro-rata basis. This means the successful bidders received about of the shares they asked for.

A. 100%

B. 110%

C. 80%

D. 85%

E. 91%