Mukmiga Sports Entertainment is offering 700 shares in a Dutch auction IPO. Where the following bids have been received, what price will Bidder B pay per share?
$\begin{array}{c}
\begin{array}{c}
\underline{\text { Bidder}}\
\mathrm{A} \
\mathrm{B} \
\mathrm{C} \
\mathrm{D} \
\mathrm{E}
\end{array}
\begin{array}{c}
\underline{\text {Quantity}}\
100\
200\
200\
300\
600
\end{array}
\begin{array}{c}
\underline{\text {Price}}\
\$ 24 \
22\
22\
21\
20
\end{array}
\end{array}$

Question

Mukmiga Sports Entertainment is offering 700 shares in a Dutch auction IPO. Where the following bids have been received, what price will Bidder B pay per share? 
$\begin{array}{c}
\begin{array}{c}
 \underline{\text { Bidder}}\
\mathrm{A} \
\mathrm{B} \
\mathrm{C} \
\mathrm{D} \
\mathrm{E}
\end{array}
\begin{array}{c}
 \underline{\text {Quantity}}\
100\
200\
200\
300\
600
\end{array}
\begin{array}{c}
 \underline{\text {Price}}\
 \$ 24 \
22\
22\
21\
20
\end{array}
\end{array}$

Quizplus · Accepted Answer

In a Dutch auction, the highest bidder will receive the shares at the lowest successful bid price. Bidder B bid for 200 shares at $22, which is not the lowest successful bid price. The lowest successful bid price is $21, offered by Bidders C and D. Therefore, Bidder B will pay $21 per share, the lowest successful bid price.

Mukmiga Sports Entertainment Is Offering 700 Shares in a Dutch