Miller Motors has decided to sell 1,800 shares of stock through a Dutch auction.The bids received are as follows: $$\begin{array} { c c c }
\text { Bidder } & \text { Quantity } & \text { Price } \
\text { A } & 400 & \$ 24 \
\text { B } & 300 & \$ 23 \
\text { C } & 1,000 & \$ 21 \
\text { D } & 1,500 & \$ 20 \
\text { E } & 2,900 & \$ 19
\end{array}$$ How much will Miller Motors receive in total from selling the 1,600 shares? Ignore all transaction and flotation costs.

Question

Miller Motors has decided to sell 1,800 shares of stock through a Dutch auction.The bids received are as follows: $$\begin{array} { c c c } 
\text { Bidder } & \text { Quantity } & \text { Price } \
 \text { A } & 400 & \$ 24 \
\text { B } & 300 & \$ 23 \
\text { C } & 1,000 & \$ 21 \
\text { D } & 1,500 & \$ 20 \
\text { E } & 2,900 & \$ 19
\end{array}$$ How much will Miller Motors receive in total from selling the 1,600 shares? Ignore all transaction and flotation costs.

Quizplus · Accepted Answer

Total cash received = 1,800 × $20 = $36,000

Miller Motors Has Decided to Sell 1,800 Shares of Stock