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Roundtree Software is going public using an auction IPO. The firm has received t

ID: 2592216 • Letter: R

Question

Roundtree Software is going public using an auction IPO. The firm has received the following bids:

Price ($)

Number of Shares

15.00

160,000

14.80

280,000

14.60

500,000

14.40

1,100,000

14.20

1,250,000

14.00

800,000

13.80460,000

Roundtree had previously believed it would issue 2,000,000

shares; however, if Roundtree decides to issue an extra

480,000 shares (for a total of 2,480,000 shares), how much total money will it raise?

Roundtree will raise a total amount of $___________million.(Round to one decimal place.)

Price ($)

Number of Shares

15.00

160,000

14.80

280,000

14.60

500,000

14.40

1,100,000

14.20

1,250,000

14.00

800,000

13.80460,000

Roundtree had previously believed it would issue 2,000,000

shares; however, if Roundtree decides to issue an extra

480,000 shares (for a total of 2,480,000 shares), how much total money will it raise?

Roundtree will raise a total amount of $___________million.(Round to one decimal place.)

Question: 1 pt 6 or 6 This Quiz: 6 pts Indtree Sonware is gong pupic using an auction IFU. Ihe trm has receved the toinwing bids: Number of Shares Price (5) 15.00 14.80 14.60 14.40 14 20 160,000 00 1,100 000 ,250 000 800,000 460,000 14.00 13.80 Roundtree had previously teiered t wold is sue 2000,00 shares, howewer, #Roundree decides to insue an extra 490,000 shares Ifor a total of 2,20,000 share how much total roney wll it raise? Roundree wil raice a total amount ofmition Round to one decimal place) Enter your aryswer in the arvswer box Save tor LMe

Explanation / Answer

Price ($) No. of Shares Cummulative Demand         15.00              160,000                160,000         14.80              280,000                440,000         14.60              500,000                940,000         14.40          1,100,000             2,040,000         14.20          1,250,000             3,290,000         14.00              800,000             4,090,000         13.80              460,000             4,550,000 The Bid Price will be $14.20, 2,480,000 shares will be issued Total Amount Raised = $14.20 X 2,480,000 Shares Total Amount Raised = $35,216,000 or $35.2 millions (Approx.)