After a long period of preparations, Leamington Inc. has finally decided to go public with an...
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After a long period of preparations, Leamington Inc. has finally decided to go public with an IPO. Following the new trend in recent successful IPOs, the company chooses the "Dutch Auction" as the method for its IPO. Leamington Inc. plans to offer 500 million shares. After completing the Dutch Auction, the company obtains the following bids and prices: Bidders A B с D E F Bids (in million) 150 50 200 100 120 180 (a) At what price will one Leamington share be sold to investors? (b) How many shares will each investor get? Prices £18 £25 £5 £10 £8 £9 [3 marks] [10 marks] After a long period of preparations, Leamington Inc. has finally decided to go public with an IPO. Following the new trend in recent successful IPOs, the company chooses the "Dutch Auction" as the method for its IPO. Leamington Inc. plans to offer 500 million shares. After completing the Dutch Auction, the company obtains the following bids and prices: Bidders A B с D E F Bids (in million) 150 50 200 100 120 180 (a) At what price will one Leamington share be sold to investors? (b) How many shares will each investor get? Prices £18 £25 £5 £10 £8 £9 [3 marks] [10 marks]
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a To determine the price at which one Leamington share will be sold to investors in the Dutch Auction we need to find the price that clears the market ... View the full answer
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Business Communication Essentials a skill based approach
ISBN: 978-0132971324
6th edition
Authors: Courtland L. Bovee, John V. Thill
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