Zebra Stripes Would Like to Sell 400 Shares of Stock

question 27

Multiple Choice

Zebra Stripes would like to sell 400 shares of stock using the Dutch auction method.The bids received were Bidder A,200 shares at $28; Bidder B,300 shares at $27; Bidder C,500 shares at $26; and Bidder D,400 shares at $25.How much will Bidder B have to pay to purchase her allocated shares?

• A)$8,100
• B)$7,610
• C)$6,480
• D)$7,240
• E)$6,730

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Definitions:

Distribution Center

A warehouse or storage facility where products are stored and from which they are distributed to retailers or customers.

Stock

Shares representing ownership in a company or commodities or goods held in inventory by a business.

Just-in-time (JIT)

An inventory management strategy that arranges the receipt of resources and materials right at the moment they are needed, reducing storage costs.

Cross-docking

A logistics practice where incoming shipments are unloaded directly from supplier or manufacturing transport onto outbound trucks, trailers, or rail cars with minimal or no storage in between, reducing inventory holding times and costs.