Roundtree Software is going public using an auction IPO. The firm has received the following bids: Assuming

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Roundtree Software is going public using an auction IPO. The firm has received the following bids:

Assuming Roundtree would like to sell 1.8 million shares in its IPO, what will be the winning auction offer price?

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Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Apr 11, 2023 01:19 AM

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Roundtree Software is going public using an auction IPO. The firm has received the following bids: Price ($) Number of Shares 14.00 100,000 13.80 200,000 13.60 500,000 13.40 1,000,000 13.20 1,200,000...
Assuming Round tree would like to sell 1.8 million shares in its IPO, what will the winning auction offer price be?
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Roundtree Software is going public using an auction IPO. The firm has received the following bids: Assuming

Question:

Price ($) 14.00 13.80 13.60 13.40 13.20 13.00 12.80 Number of Shares 100,000 200,000 500,000 1,000,000 1,200,000 800,000 400,000

Step by Step Answer:

First compute the cumulative total number of shares demanded at or ...View the full answer

Fundamentals Of Corporate Finance

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