Indigo Inc. is going public and issuing 150,000 shares of common stock. The capital raised in the IPO will fund the company's proposed expansion. A Dutch auction is used to allocate shares in the Indigo IPO. The following table shows the number of shares requested by potential investors in each row. Bids Bidder # 1 Bidder #2 Bidder a 3 Bidder 4 Bidder #5 Bidder #6 What should be the firm's IPO offer price? O $55 O $51 O $57 Number of Shares Requested Price per Share 50,000 $59 100,000 57 150,000 55 200,000 53 250,000 51 300,000 49 O $52 0 $54

Indigo Inc. is going public and issuing 150,000 shares of common stock. The capital raised in the IPO will fund the company's proposed expansion. A Dutch auction is used to allocate shares in the Indigo IPO. The following table shows the number of shares requested by potential investors in each row. Bids Bidder # 1 Bidder #2 Bidder a 3 Bidder 4 Bidder #5 Bidder #6 What should be the firm's IPO offer price? O $55 O $51 O $57 Number of Shares Requested Price per Share 50,000 $59 100,000 57 150,000 55 200,000 53 250,000 51 300,000 49 O $52 0 $54

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

ChapterC2: Spatial Technology, Inc.

Section: Chapter Questions

Problem kA

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K Roundtree Software is going public using an auction IPO. The firm has received the following bids: Price ($) Number of Shares 14.00 120,000 13.80 200,000 13.60 560,000 13.40 1,100,000 13.20 1,300,000 13.00 12.80 800,000 440,000 Roundtree had previously believed it would issue 2,000,000 shares; however, if Roundtree decides to issue an extra 504,000 shares (for a total of 2,504,000 shares), Roundtree will raise a total amount of $33.1 million. (Round to one decimal place.)
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