Southaven, Inc How Much Will the Firm Receive from This Offering If

question 46

Multiple Choice

Southaven, Inc., is offering 1,000 shares in a Dutch auction IPO. The following bids have been received:
$$\begin{array} { c c c } \text { Bidder } & \text { Ountity } & \text {Price } \\\text { A } & 300 & \$ 25 \\\text { B } & 200 & 25 \\\text { C } & 500 & 22 \\\text { D } & 400 & 21 \\\text { E } & 200 & 20\end{array}$$
How much will the firm receive from this offering if the underwriter's fee is 7.5%?

• A)$17,906
• B)$20,350
• C)$22,385
• D)$27,485
• E)$31,095

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