Sunshine Pageants decides that it will use a Dutch auction to repurchase 2 million shares. Investors have submitted the following bids on the price and quantity they are willing to sell shares to the firm:
Price ($) Shares
24.45 ............. 100,000
24.50 ............. 200,000
24.60 ............. 600,000
24.75 ............. 1,100,000
24.95 ............. 2,000,000
25.15 ............. 2,500,000
25.50 ............. 5,000,000
Determine the lowest price at which the firm is able to purchase 2 million shares. (If the firm is willing to purchase shares for $25.50, then it must purchase all shares at this price; the goal is to find the lowest price at which the firm can purchase the 2 million shares.) Given the purchase price of the shares, how much extra money do the shareholders receive compared to the schedule of acceptable bids?