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)
 11eaabab_c07b_d65b_b90e_53ecdacec236_TB5536_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