Problem 1 (10 marks)

You are the lead broker for the syndicate that will be issuing $45,000,000 in a new equity issue for the Rocket Science Corporation. The issue will be a firm commitment offering and the entire issue was purchased for a discounted price. The new equity issue will be sold using a Dutch auction. Calculate the selling price and the number of shares each successful bidder will receive. Show your work!

Investor	shares	bid price
1	30,000	95
2	50,000	96.25
3	75,000	94.5
4	100,000	100
5	100,000	96.5
6	150,000	100
7	150,000	97.75
8	200,000	98