Luther Industries is in the process of selling shares of stock in an auction IPO. At the end of the bidding period, Luther's investment bank has received the following bids:

The proceeds from the IPO be if Luther is selling 1.25 million shares is closest to ________.

Question

Luther Industries is in the process of selling shares of stock in an auction IPO. At the end of the bidding period, Luther's investment bank has received the following bids:

The proceeds from the IPO be if Luther is selling 1.25 million shares is closest to ________.

Quizplus · Accepted Answer

C)
 11eaabab_c07b_fd6d_b90e_49ae29db962c_TB5536_00 By looking at cumulative demand, we see that a cumulative demand of 1.25 million shares corresponds to a price of $16.80.
So, proceeds = $16.80 × 1,250,000 = $21,000,000

Luther Industries Is in the Process of Selling Shares of Stock