KRoundtree Software is going public using an auction IPO. The firm has received the following bids:Price ($)Number of Shares14.00120,00013.80200,00013.60560,00013.401,100,00013.201,300,00013.0012.80800,000440,000Roundtree 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.)

Step 1: PricesNo. of Shares 14120,000 13.8200,000 13.6560,000 13.41,100,000…

Answered: K Roundtree Software is going public…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Roundtree Software is going public using an auction IPO. The firm has received the following bids: Price ($) Number of Shares 15.00 100,000 14.80 220,000 14.60 500,000 14.40 1,000,000 14.20 1,250,000 14.00 840.000 480,000 13.80 Roundtree had previously believed it would issue 1,800,000 shares; however, if Roundtree decides to issue an extra 547,000 shares (for a total of 2,347,000 shares), how much total money will it raise? Roundtree will raise a total amount of $ million. (Round to one decimal place.)
Roundtree Software is going public using an auction IPO. The firm has received the following bids: Number of Shares Price ($) 14.40 14.20 14.00 13.80 13.60 13.40 13.20 160,000 220,000 520,000 1,300,000 1,260,000 880,000 420,000 Assuming Roundtree would like to sell 2.20 million shares in its IPO, what will be the winning auction offer price? The price will be $per share. (Round to the nearest cent.)
Roundtree Software is going public using an auction IPO. The firm has received the following bids: Number of Shares 120,000 200,000 560,000 1,200,000 1,240,000 800,000 400,000 Price $14.60 14.40 14.20 14.00 13.80 13.60 13.40 Assuming Roundtree would like to sell 2.08 million shares in its IPO, what will the winning auction offer price be? The price will be $ per share. (Round to two decimal places.)
Lulu Industries is in the process of selling shares in an auction IPO. At the end of the bidding period, Lulu's investment bank has received the following bids: Number of Shares Bid 50,000 25,000 25,000 100,000 125,000 Price ($) $19.50 $19.25 $19.10 $19.00 $18.75 $18.50 $18.25 $18.00 $17.75 $17.50 What will the offer price of these shares be if Lulu is selling 0.5 million shares? $18.75 $19.10 $18.50 75,000 150,000 240,000 80,000 125,000 $18.25
AVC Auctions (AVCA) has offered its 16.6 million shares in a Dutch Auction IPO. The following bids have been received:Bidder Quantity Price 1 4,150,000 $ 25.60 2 5,500,000 $ 25.35 3 7,000,000 $ 25.00 4 2,250,000 $ 24.75How many shares will Bidder 3 be able to purchase? How much will Bidder 3 have to spend to purchase all of the shares that have been allocated to them?
Weeks ago, the consumer products giant, Unilever, announced plans to buy back 700,000 shares using a Dutch auction. Since then the company has solicited interest from shareholders by asking how many shares they would tender at different prices. The information they collected appears in the following table: Offer Price Total Shares Tendered 56.00 190,000 56.15 355,000 56.30 490,000 56.45 635,000 56.60 780,000 56.75 920,000 a) What is the average price that the company will pay to buy back shares? $56.60 b) Is the offer oversubscribed or undersubscribed? oversubscribed, greater c) What percentage of the shares offered by stockholders that will be repurchased? (enter your respose here)
You would like to buy shares of International Business Machines (IBM). The current bid and ask quotes are $103.25 and $103.30, respectively. You place a market buy-order for 200 shares that executes at these quoted prices. How much money did it cost to buy these shares?
You would like to buy shares of Coldwater Creek, Inc. (CWTR). The current ask and bid quotes are $20.70 and $20.66. respectively. You place a market buy order for 270 shares that executes at these quoted prices. How much money did it cost to buy these shares? Cost of shares
Dallas Market Makers is offering 800 shares in a Dutch auction IPO. The following bids have been received. Bidder Quantity Price A 200 $ 25 100 24 100 23 500 22 800 21 B C D E How much will Bidder B have to spend to purchase all of the shares that have been allocated to him? Multiple Choice O $1595.65 $1,955.56 $1,995.83 $2,393.43 $2,433.23
Suppose Sally Rubber Co. is going public and, based on the bookbuilding process, decides it will be issuing 300,000 shares of common stock to raise capital to fund the company's proposed expansion. Suppose a Dutch auction (an auction in which the auctioneer begins with a high asking price and lowers it until some bidder accepts the price) is used to allocate shares in the Sally Rubber Co. IPO. The following table shows the number of shares requested by potential bidders. Bids Bidder 1 Bidder 2 Bidder 3 Bidder 4 Bidder 5 Bidder 6 Number of Shares Requested Price per Share 50,000 $62 100,000 150,000 200,000 250,000 300,000 $58 $51 $48 $40 $37 To sell the 300,000 shares, Sally Rubber Co.'s IPO minimum offer price should be $ The total amount of funding raised will be $ Given the typical 7 percent transaction cost due to the issuing firm, the IPO would result in a transaction cost of $
Suppose Sally Rubber Co. is going public and, based on the bookbuilding process, decides it will be issuing 300,000 shares of common stock to raise capital to fund the company's proposed expansion. Suppose a Dutch auction (an auction in which the auctioneer begins with a high asking price and lowers it until some bidder accepts the price) is used to allocate shares in the Sally Rubber Co. IPO. The following table shows the number of shares requested by potential bidders. Bids Bidder 1 Number of Shares Requested Price per Share 50,000 $65 Bidder 2 100,000 $55 Bidder 3 150,000 $54 Bidder 4 200,000 $48 Bidder 5 250,000 $41 Bidder 6 300,000 $39 To sell the 300,000 shares, Sally Rubber Co.'s IPO minimum offer price should be $ The total amount of funding raised will be $ Given the typical 7 percent transaction cost due to the issuing firm, the IPO would result in a transaction cost of $
DFI Corp is offering 600 shares in a Dutch auction IPO. The following bids have been received: Bidder A B. Quantity 100 200 100 300 200 How much will DFI get at the end of this IPO? Price $24 $23 $22 $21 S20 D

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS