Bressler's would like to sell 600shares of stock using the Dutch auction method.The bids received are as follows: $$\begin{array} { | c | c | r | }
\hline \text { Bidder } & \text { Quantity } & \text { Price } \
\hline \text { A } & 100 & \$ 18 \
\hline \text { B } & 300 & 17 \
\hline \text { C } & 400 & 16 \
\hline \text { D } & 700 & 15 \
\hline
\end{array}$$ Bidder A will receive _____ shares and pay a price per share of ____.Bidder C will receive no allocation.

Question

Bressler's would like to sell 600shares of stock using the Dutch auction method.The bids received are as follows: $$\begin{array} { | c | c | r | } 
\hline \text { Bidder } & \text { Quantity } & \text { Price } \
\hline \text { A } & 100 & \$ 18 \
\hline \text { B } & 300 & 17 \
\hline \text { C } & 400 & 16 \
\hline \text { D } & 700 & 15 \
\hline
\end{array}$$ Bidder A will receive _____ shares and pay a price per share of ____.Bidder C will receive no allocation.

Quizplus · Accepted Answer

To sell 600 shares, we start by allocating to the highest bidder and work our way down until we reach the point where the total quantity of shares allocated is 600.

- Bidder D bids for 700 shares at a price of $15. Therefore, allocate all 600 shares to Bidder D at $15 per share. 
- Bidder A bids for 100 shares at a price of $18, so they will not be allocated any shares. 
- Bidder B bids for 300 shares at a price of $17, so they will not be allocated any shares. 
- Bidder C bids for 400 shares at a price of $16, so they will not be allocated any shares.

Therefore, Bidder D will receive 600 shares for a total of $9,000 ($15 per share).

Bressler's Would Like to Sell 600shares of Stock Using the Dutch