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 from shareholders by asking how many shares they would tender at different prices. The information they collected appears in the following​ table: Offer Price    Total Shares Tendered      56.00                   190,000      56.15                   355,000      56.30                   490,000      56.45                   635,000      56.60                   780,000      56.75                   920,000   a) What is the average price that the company will pay to buy back​ shares? $56.60 b) Is the offer oversubscribed or​ undersubscribed? oversubscribed, greater c) What percentage of the shares offered by stockholders that will be​ repurchased? (enter your respose here)

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
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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 from shareholders by asking how many shares they would tender at different prices. The information they collected appears in the following​ table:

Offer Price    Total Shares Tendered
     56.00                   190,000
     56.15                   355,000
     56.30                   490,000
     56.45                   635,000
     56.60                   780,000
     56.75                   920,000

 
a) What is the average price that the company will pay to buy back​ shares?
$56.60
b) Is the offer oversubscribed or​ undersubscribed?
oversubscribed, greater
c) What percentage of the shares offered by stockholders that will be​ repurchased?
(enter your respose here) 
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