Newton Water Works would like to sell 500 shares of stock using a Dutch auction.The bids received were Bidder A,100 shares at $26; Bidder B,300 shares at $25; Bidder C,200 shares at $25; Bidder D,500 shares at $24; and Bidder E,800 shares at $22.Bidder D will be able to purchase ________ shares at total cost of ________.Assume allocated shares are rounded to the nearest whole share.

Question

Quizplus · Accepted Answer

Bidder D will not be able to purchase any shares because the firm can sell all 500 shares at a higher price than Bidder D submitted.

Newton Water Works Would Like to Sell 500 Shares of Stock