Indigo Inc. is going public and issuing 150,000 shares of common stock. The capital raised in the IPO will fund the company's proposed expansion. A Dutch auction is used to allocate shares in the Indigo IPO. The following table shows the number of shares requested by potential investors in each row. Bids Bidder # 1 Bidder #2 Bidder a 3 Bidder 4 Bidder #5 Bidder #6 What should be the firm's IPO offer price? O $55 O $51 O $57 Number of Shares Requested Price per Share 50,000 $59 100,000 57 150,000 55 200,000 53 250,000 51 300,000 49 O $52 0 $54
Indigo Inc. is going public and issuing 150,000 shares of common stock. The capital raised in the IPO will fund the company's proposed expansion. A Dutch auction is used to allocate shares in the Indigo IPO. The following table shows the number of shares requested by potential investors in each row. Bids Bidder # 1 Bidder #2 Bidder a 3 Bidder 4 Bidder #5 Bidder #6 What should be the firm's IPO offer price? O $55 O $51 O $57 Number of Shares Requested Price per Share 50,000 $59 100,000 57 150,000 55 200,000 53 250,000 51 300,000 49 O $52 0 $54
ChapterC2: Spatial Technology, Inc.
Section: Chapter Questions
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![Indigo Inc. is going public and issuing 150,000 shares of common stock. The capital raised in the IPO will fund the company's proposed expansion. A
Dutch auction is used to allocate shares in the Indigo IPO. The following table shows the number of shares requested by potential investors in each
row.
Bids
Bidder # 1
Bidder #2
Bidder 3
Bidder # 4
Bidder 5
Bidder # 6
What should be the firm's IPO offer price?
O $55
O $51
$57
Number of Shares Requested Price per Share
50,000
$59
100,000
57
150,000
55
200,000
53
250,000
51
300,000
49
O $52
O $54](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb9313d40-3787-4530-acb8-cea09322183e%2Fc85b4aa5-7307-423d-896e-014da9e80415%2Ffjqzr5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Indigo Inc. is going public and issuing 150,000 shares of common stock. The capital raised in the IPO will fund the company's proposed expansion. A
Dutch auction is used to allocate shares in the Indigo IPO. The following table shows the number of shares requested by potential investors in each
row.
Bids
Bidder # 1
Bidder #2
Bidder 3
Bidder # 4
Bidder 5
Bidder # 6
What should be the firm's IPO offer price?
O $55
O $51
$57
Number of Shares Requested Price per Share
50,000
$59
100,000
57
150,000
55
200,000
53
250,000
51
300,000
49
O $52
O $54
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