Ch 15 sections 14 0.11863440257880964 1511808040587 100.00 points QUESTION PROGR

Question

Ch 15 sections 14 0.11863440257880964 1511808040587 100.00 points QUESTION PROGRESS Click And Drag Click And Drag Concept Check Click And Drag ABC Company wants to sell 100,000 shares and has intiated a Dutch Auction to sell the shares Five bidders have submitted bids Determine the "stop-ouf" price and the number of shares bidder Stone will receive PRICES $16.00 $17.00 $18. 19.00 $20.00 HARES . 20,222) ) (30 00 22,222 24,000 28,222 Bidder SharesPrice Stone Compton 25,000 $19.00 Williams35,000 $18.00 How much will the company receive per share of stock sold? Price paid by all bidders How many shares will bidder Stone receive? 30,000 $20.00 Davis 35,000 1700Number of shares to Stone Grant 10,000 $16.00 Reset prev next glossary Type here to search 0 .1 0.15 sections 14-- e 89ype Another Name F

Explanation / Answer

Ans.1 As per the Dutch auction the company will reduce the price to the point where all shares are sold, and there are enough bidders. The auction will go as follows

As per the auction the company may get total of 125,000 but the price which completed the big was $17.

B. The price paid by all the bidder will be $17.

C. Stone will get 30,000 shares

Bids Price (USD) Bidder Share Total Share sold 1 20 Stone 30,000 30,000 1 19 Compton 25,000 55,000 1 18 Williams 35,000 90,000 1 17 Davis 35,000 125,000

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