Dutch Auction Weeks ago, the consumer products giant, Unilever, announced plans to buy back 700,000 shares using a Dutch auction. Since then the company has solicited interest fromshareholders by asking how many shares they would tender at different prices. The information they collected appears in the following table:a. What is the average price that the company will pay to buy back shares?b. Is the offer oversubscribed or undersubscribed?c. What percentage of the shares offered by stockholders that will be repurchased?Data tablea. The average price that the company will pay to buy back shares is $(Round to the nearest cent.)(Click on the following icon in order to copy its contents into a spreadsheet.Total Shares TenderedOffer Price$54.00210,000$54.10340,000$54.20490,000$54.30655,000$54.40800,000$54.50940,000PrintDone

Answered: Image /qna-images/answer/713483d3-f1fe-47f9-a2be-eca06d8e96d4.jpg

Answered: Dutch Auction Weeks ago, the consumer…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Lulu Industries is in the process of selling shares in an auction IPO. At the end of the bidding period, Lulu's investment bank has received the following bids: Number of Shares Bid 50,000 25,000 25,000 100,000 125,000 Price ($) $19.50 $19.25 $19.10 $19.00 $18.75 $18.50 $18.25 $18.00 $17.75 $17.50 What will the offer price of these shares be if Lulu is selling 0.5 million shares? $18.75 $19.10 $18.50 75,000 150,000 240,000 80,000 125,000 $18.25
On February 2, 2016, an investor held some Province of Ontario stripped coupons in a self-administered RRSP at ScotiaMcLeod, an investment dealer. Each coupon represented a promise to pay $100 at the maturity date on February 2, 2022, but the investor would receive nothing until then. The value of the coupon showed as $76.19 on the investor's screen. This means that the investor was giving up $76.19 on February 2, 2016, in exchange for $100 to be received just less than six years later. a. Based upon the $76.19 price, what rate was the yield on the Province of Ontario bond? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Rate of return b. Suppose that on February 2, 2017, the security's price was $84.00. If an investor had purchased it for $76.19 a year earlier and sold it on this day, what annual rate of return would she have earned? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annual rate of return…
Here is a small part of the order book for Mesquite Foods: Price 97 96.5 95 93.8 Bid Price Size 180 360 720 540 Price 97.5 97.8 98 98.5 Maximum price Ask a. Georgina Sloberg submits a market order to sell 180 shares. What price will she receive? Size 360 360 620 640 b. Norman Pilbarra submits a market order to buy 640 shares. What is the maximum price that he will pay? (Round your answer to 2 decimal places.) c. Carlos Ramirez submits a limit bid order at 99. Will it execute immediately?
On February 2, 2016, an investor held some Province of Ontario stripped coupons in a self-administered RRSP at ScotiaMcLeod, an investment dealer. Each coupon represented a promise to pay $100 at the maturity date on February 2, 2022, but the investor would receive nothing until then. The value of the coupon showed as $84.73 on the investor's screen. This means that the investor was giving up $84.73 on February 2, 2016, in exchange for $100 to be received just less than six years later. a. Based upon the $84.73 price, what rate was the yield on the Province of Ontario bond? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Rate of return b. Suppose that on February 2, 2017, the security's price was $89.00. If an investor had purchased it for $84.73 a year earlier and sold it on this day, what annual rate of return would she have earned? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annual rate of return…
At the start of the year, you purchased some shares in IBM (a US company) for $US 25.44. The exchange rate at the time of purchase was $US1 = $NZ 1.86. Now the exchange rate is $US1 = $NZ 1.72, while the shares are worth $US 27.91. IBM paid no dividends over the year. What is your ($NZ) holding period return from the start of the year until today? 9.71% 2.18% 1.45% -7.53%
You would like to buy shares of Sirius Satellite Radio (SIRI) The current ask and bid quotes are $3.96 and $3.93 respectivety You place a market buy-order for 500 shares that executes at these quoted prices How much money did it cost to buy these shares?
A French Investor buys 250 shares of Teck for $18,750 ($75 per share). Over the course of a year, Teck goes up by $8.65. a. If there is a 10 percent gain in the value of the dollar versus the euro, what will be the total percentage return to the French Investor? (Do not round Intermediate calculations. Round the final answer to 2 decimal places.) Total percentage return 1% b. Now assume the stock Increases by $10 but the dollar decreases by 10 percent versus the euro. What will be the total percentage return to the French Investor? (Round your final answer to the nearest whole percentage.) Total percentage return
You would like to sell 220 shares of Echo Global Logistics, Inc. (ECHO). The current ask and bid quotes are $15.44 and $15.39, respectively. You place a limit sell order at $15.43.If the trade executes, how much money do you receive from the buyer?
You invested three thousand US dollars and purchased shares of a German corporation when the exchange rate was US1.00 = 0.70 Euros. After six months, you sold all of the shares for 3,100 euros when the exchange rate was US1.00 = 0.68 euros. No dividends were paid during the time you owned the shares of stock. What is the amount of gain or loss on this investment in US dollars? Group of answer choices $2,458.82 $892.00 Loss $1,000.00 $273.11 none of the given answers is correct
Roundtree Software is going public using an auction IPO. The firm has received the following bids: Number of Shares 120,000 200,000 560,000 1,200,000 1,240,000 800,000 400,000 Price $14.60 14.40 14.20 14.00 13.80 13.60 13.40 Assuming Roundtree would like to sell 2.08 million shares in its IPO, what will the winning auction offer price be? The price will be $ per share. (Round to two decimal places.)
Required: Mr. James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,150. The share was bought for SF4,670 a year ago. The exchange rate is SF1.95 per U.S. dollar now and was SF1.92 per dollar a year ago. Mr. Silber received SF134 as a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,670, his principal investment amount, forward at the forward exchange rate of SF1.97 per dollar. How would this affect the dollar rate of return on this Swiss stock investment? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Rate of return %

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