Wellington Seafood Company would like to sell 4,000 shares of stock to acquire its competitor Kapiti Crab Inc. The manager decides to use Dutch auction underwriting. The bids received are: Bidder A B с D E Quantity 1100 900 O $32,340 O $25,872 1,450 1,550 1,750 Price $29.40 29.05 28.90 28.55 28.35 How much should bidder A need to pay if the bidder receives the allocated shares?

Wellington Seafood Company would like to sell 4,000 shares of stock to acquire its competitor Kapiti Crab Inc. The manager decides to use Dutch auction underwriting. The bids received are: Bidder A B с D E Quantity 1100 900 O $32,340 O $25,872 1,450 1,550 1,750 Price $29.40 29.05 28.90 28.55 28.35 How much should bidder A need to pay if the bidder receives the allocated shares?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Dallas Market Makers is offering 800 shares in a Dutch auction IPO. The following bids have been received. Bidder Quantity Price A 200 $ 25 100 24 100 23 500 22 800 21 B C D E How much will Bidder B have to spend to purchase all of the shares that have been allocated to him? Multiple Choice O $1595.65 $1,955.56 $1,995.83 $2,393.43 $2,433.23
Rial Company wants to sell 400 shares to the public with Dutch auction underwring. The company receives five bids as follows: Bidder Quantity Price A 100 shares $16 B 100 shares 14 C 100 shares 12 D 200 shares 10 E 100 shares 9 1. Who are the bidders that will win the auction? 2. What will be the offer price in the IPO? 3. How much in total will Rial Company receive?
DFI Corp is offering 600 shares in a Dutch auction IPO. The following bids have been received: Bidder A B. Quantity 100 200 100 300 200 How much will DFI get at the end of this IPO? Price $24 $23 $22 $21 S20 D
1. Swenson Markets would like to sell an additional 1,000 shares of stock using a Dutch auction. The bids received are as follows: (Table below should be interpreted as follows: Bidder A is willing to pay $31 for each share, up to 100 shares while bidder B is willing to pay $29 for each share, up to 100 shares) (Hint: Remember that for Dutch auctions, sell shares first to bidder with willing to pay the highest price and then to bidder with second highest price and so on until all shares are sold. However, every bidder will pay the price of the last bidder to receive any shares. In other words, everyone will pay the lowest price of all successful bidders receiving shares regardless of their own price bids.) Bidder Price A B с 500 D 600 E 400 What is the total amount the issuer will receive from this auction? Ignore costs. Quantity 100 100 $31 $29 $28 $27 $26
AVC Auctions (AVCA) has offered its 16.6 million shares in a Dutch Auction IPO. The following bids have been received:Bidder Quantity Price 1 4,150,000 $ 25.60 2 5,500,000 $ 25.35 3 7,000,000 $ 25.00 4 2,250,000 $ 24.75How many shares will Bidder 3 be able to purchase? How much will Bidder 3 have to spend to purchase all of the shares that have been allocated to them?
Canadian Air would like to sell 3825899 shares of stock using Dutch auction underwriting. The bids received are: Bidder A B Quantity 650,000 750,000 1,150,000 1,350,000 550,000 700,000 Price 31 30 29 28 27 26 How much will the company raise in its offer? Suppose that the underwriting gross spread is 6%.
ABC would like to repurchase 50,000 of its ordinary shares. Investor X offered to sell his 20,000 shares at P20 per share. Investor Y offered to sell his 30,000 shares at P21 per share. Lastly, Investor Z offered to sell his 50,000 shares at P22 per share. ABC eventually paid Investors X and Y P21 per share to complete the repurchase. This is a/an *A. Fixed price tender offerB. Dutch auction self-tender repurchaseC. Open market operationD. Selective buy-back
The bidders in a Dutch auction are as follows: Bidder Number of shares Price 60,000 10,000 A £50.00 В £60.00 C 30,000 £45.00 D 50,000 £39.00 E 40,000 £42.00 F 40,000 £42.00 G 70,000 £35.00 H 30,000 £60.00 The number of shares being auctioned is 180,000. Find and state the price paid by investors. Also state the number of shares received by each investor.
Lulu Industries is in the process of selling shares in an auction IPO. At the end of the bidding period, Lulu's investment bank has received the following bids: Number of Shares Bid 50,000 25,000 25,000 100,000 125,000 Price ($) $19.50 $19.25 $19.10 $19.00 $18.75 $18.50 $18.25 $18.00 $17.75 $17.50 What will the offer price of these shares be if Lulu is selling 0.5 million shares? $18.75 $19.10 $18.50 75,000 150,000 240,000 80,000 125,000 $18.25
K Roundtree Software is going public using an auction IPO. The firm has received the following bids: Price ($) Number of Shares 14.00 120,000 13.80 200,000 13.60 560,000 13.40 1,100,000 13.20 1,300,000 13.00 12.80 800,000 440,000 Roundtree had previously believed it would issue 2,000,000 shares; however, if Roundtree decides to issue an extra 504,000 shares (for a total of 2,504,000 shares), Roundtree will raise a total amount of $33.1 million. (Round to one decimal place.)
You would like to sell 220 shares of Echo Global Logistics, Inc. (ECHO). The current ask and bid quotes are $15.44 and $15.39, respectively. You place a limit sell order at $15.43.If the trade executes, how much money do you receive from the buyer?
Roundtree Software is going public using an auction IPO. The firm has received the following bids: Number of Shares Price ($) 14.40 14.20 14.00 13.80 13.60 13.40 13.20 160,000 220,000 520,000 1,300,000 1,260,000 880,000 420,000 Assuming Roundtree would like to sell 2.20 million shares in its IPO, what will be the winning auction offer price? The price will be $per share. (Round to the nearest cent.)

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