Wellington Seafood Company would like to sell 4,000 shares of stock to acquire its competitor Kapiti Crab Inc. The manager decides to use Dutch auction underwriting. The bids received are: Bidder A B с D E Quantity 1100 900 O $32,340 O $25,872 1,450 1,550 1,750 Price $29.40 29.05 28.90 28.55 28.35 How much should bidder A need to pay if the bidder receives the allocated shares?
Wellington Seafood Company would like to sell 4,000 shares of stock to acquire its competitor Kapiti Crab Inc. The manager decides to use Dutch auction underwriting. The bids received are: Bidder A B с D E Quantity 1100 900 O $32,340 O $25,872 1,450 1,550 1,750 Price $29.40 29.05 28.90 28.55 28.35 How much should bidder A need to pay if the bidder receives the allocated shares?
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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Please answer MCQ not working required
Transcribed Image Text:Wellington Seafood Company would like to sell 4,000 shares of stock to acquire its competitor Kapiti Crab Inc. The manager decides to use Dutch auction underwriting.
The bids received are:
Bidder
A
ABCDE
с
O $32,340
O $25,872
Quantity
1100
900
How much should bidder A need to pay if the bidder receives the allocated shares?
O $25,124
O $31,405
1,450
1,550
1,750
Price
$29.40
29.05
28.90
28.55
28.35
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