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: The proceeds from the IPO be if Luther is selling 1.25 million shares is closest to ________.

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:  The proceeds from the IPO be if Luther is selling 1.25 million shares is closest to ________.

Quizplus · Accepted Answer

C)
 11ea84dc_f521_19da_9a63_05407921b409_TB1316_00_TB1316_00 By looking at cumulative demand, we see that a cumulative demand of 1.25 million shares corresponds to a price of $16.80.
So, proceeds = $16.80 × 1,250,000 = $21,000,000

Luther Industries Is in the Process of Selling Shares of Stock