Your firm has chosen to raise capital via an Initial Public Offering. There was discussion amongst the possible types of IPO, but the firm eventually settled on a Dutch Auction format. The underwriting syndicate has collected bids that are shown in the data. Based on the received bids, determine how many shares each bidder will be granted and the total cost of the shares. What are the total proceeds received by the firm if the syndicate requires a 4% fee for their services?

Total shares to be issued:	6.2	million
	Bidder	Shares Requested	Price
	A	780,000	$37.85
	B	1,200,000	$38.25
	C	1,535,000	$37.15
	D	2,625,000	$37.90
	E	130,000	$38.80
	F	1,900,000	$38.00
	G	2,400,000	$38.25
	H	750,000	$38.15
	I	1,500,000	$38.40
	J	1,850,000	$38.65
	K	850,000	$38.45

Answer rating: 100% (QA)

To determine the number of shares each bidder will be granted and the total cost of the shares in a Dutch Auction IPO we need to sort the bids from hi... View the full answer