Your second option to raise funding is to go public with an IPO. To do this, you can either use an Auction IPO or a firm commitment IPO. You decide to run the scenario for both options.

You put your feelers out to get an idea of the bids you could receive if you choose to use an auction IPO. You would like to sell 1 million shares in the company. The information you receive reveals the following soft offers.

Based on this data, what would be the auction offer price per share?

PriceNumber of SharesCumulative Demand $32.42175,000 $32.25195,000 $32.00150,000 $31.99200,000 $31.40280,000 $31.00270,000 $30.75250,000 $30.50100,000 Auction Price per share: Your second option to raise funding is to go public with an IPO. To do this, you can either use an Auction IPO or a firm commitment IPO. You decide to run the scenario for both options. You put your feelers out to get an idea of the bids you could receive if you choose to use an auction IPO. You would like to sell 1 million shares in the company. The information you receive reveals the following soft offers. \\begin{tabular}{|r|r|} \\hline Price & \\( \\begin{array}{l}\\text { Number } \\\\ \\text { of Shares }\\end{array} \\) \\\\ \\hline 32.42 & 175,000 \\\\ \\hline 32.25 & 195,000 \\\\ \\hline 32 & 150,000 \\\\ \\hline 31.99 & 200,000 \\\\ \\hline 31.4 & 165,000 \\\\ \\hline 31 & 275,000 \\\\ \\hline 30.75 & 250,000 \\\\ \\hline 30.5 & 100,000 \\\\ \\hline \\end{tabular} Based on this data, what would be the auction offer price per share? Price \\( \\begin{array}{l}\\text { Number Cumulative } \\\\ \\text { of Shares Demand }\\end{array} \\) \\begin{tabular}{|l|r|} \\hline\\( \\$ 32.42 \\) & 175,000 \\\\ \\hline\\( \\$ 32.25 \\) & 195,000 \\\\ \\hline\\( \\$ 32.00 \\) & 150,000 \\\\ \\hline\\( \\$ 31.99 \\) & 200,000 \\\\ \\hline\\( \\$ 31.40 \\) & 280,000 \\\\ \\hline\\( \\$ 31.00 \\) & 270,000 \\\\ \\hline\\( \\$ 30.75 \\) & 250,000 \\\\ \\hline\\( \\$ 30.50 \\) & 100,000 \\\\ \\hline \\end{tabular} Auction Price per share