The bidders in a Dutch auction are as follows: Bidder Number of shares Price A 60,000 £50.00 B 20,000 £80.00 C 30,000 £55.00 D 40,000 £38.00 E 40,000 £44.00 F 40,000 £42.00 G 50,000 £35.00 H 50,000 £60.00 The number of shares being auctioned is 200,000. What is the price paid by investors? How many shares does each investor receive? a. The price paid by the investors is the price bid by C = £55. b. The price paid by the investors is the price bid by E = £44. c. The price paid by the investors is the price bid by A = £50. d. The price paid by the investors is the price bid by H = £60.
The bidders in a Dutch auction are as follows: Bidder Number of shares Price A 60,000 £50.00 B 20,000 £80.00 C 30,000 £55.00 D 40,000 £38.00 E 40,000 £44.00 F 40,000 £42.00 G 50,000 £35.00 H 50,000 £60.00 The number of shares being auctioned is 200,000. What is the price paid by investors? How many shares does each investor receive? a. The price paid by the investors is the price bid by C = £55. b. The price paid by the investors is the price bid by E = £44. c. The price paid by the investors is the price bid by A = £50. d. The price paid by the investors is the price bid by H = £60.
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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Question
The bidders in a Dutch auction are as follows:
|
Bidder |
Number of shares |
Price |
|
A |
60,000 |
£50.00 |
|
B |
20,000 |
£80.00 |
|
C |
30,000 |
£55.00 |
|
D |
40,000 |
£38.00 |
|
E |
40,000 |
£44.00 |
|
F |
40,000 |
£42.00 |
|
G |
50,000 |
£35.00 |
|
H |
50,000 |
£60.00 |
The number of shares being auctioned is 200,000. What is the price paid by investors? How many shares does each investor receive?
a. The price paid by the investors is the price bid by C = £55.
b. The price paid by the investors is the price bid by E = £44.
c. The price paid by the investors is the price bid by A = £50.
d. The price paid by the investors is the price bid by H = £60.
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