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Your firm pitched the issue to several large private equity clients. Fourteen sealed bids were submitted, and you have sorted them by bid price. The results are shown below. Bidder Price Shares A $101.43 575,000   B $100.87 440,000   C $100.12 600,000   D $98.93 750,000   E $96.73 900,000   F $95.37 1,000,000   G $93.12 1,150,000   H $91.54 1,350,000   I $90.37 800,000   J $89.42 1,375,000   K $88.14 1,700,000   L $87.52 1,300,000   M $85.73 1,225,000   N $84.28 1,800,000   What marginal price will the 7,150,000 shares of Thornton & Danaher sell at in the Dutch Auction? Also, calculate the pro rata portion of shares each of the winning bidders will receive for the number of shares they bid.

Financial Management, Finance

  • Category:- Financial Management
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