A company wants to go public with an auction mechanism. The bids and demand are ...
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A company wants to go public with an auction mechanism. The bids and demand are in the following table:
Price | Shares demanded |
50 | 8,000 |
51 | 5,000 |
52 | 3,500 |
53 | 2,800 |
54 | 900 |
55 | 100 |
If the company wants to raise minimum $100,000 in share capital, what price should it offer? The underwriter fees are 5%.
0%
100%
0%
0%
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