Luther Industries is in the process of selling shares of stock in an auction IPO. At the end of the bidding period, Luther's investment bank has received the following bids: What will the offer price of these shares be if Luther is selling 1 million shares?

Question

Luther Industries is in the process of selling shares of stock in an auction IPO. At the end of the bidding period, Luther's investment bank has received the following bids:  What will the offer price of these shares be if Luther is selling 1 million shares?

Quizplus · Accepted Answer

C)
 11ea84dc_f520_cbb8_9a63_bbb461f383bd_TB1316_00_TB1316_00 By looking at cumulative demand, we see that a cumulative demand of 1 million shares corresponds to a price of $17.35.

Luther Industries Is in the Process of Selling Shares of Stock