Explanation:
We first arrange all bids in descending order:
| Bidder | Number of Shares | Price (USD) |
|---|---|---|
| C | 5,000 | 90 |
| G | 8,000 | 86 |
| D | 6,000 | 85 |
| F | 4,000 | 84 |
| A | 3,000 | 80 |
| B | 2,000 | 73 |
| E | 9,000 | 70 |
To find the Dutch auction clearing price, we accumulate shares from highest to lowest bid until reaching at least 20,000 shares:
The price at which the threshold is crossed is $84.
Therefore, the auction clearing price is:
Ultimate access to all questions.
The bids and bidders in a Dutch auction to sell 20,000 shares are as follows:
| Bidder | Number of Shares | Price (USD) |
|---|---|---|
| A | 3,000 | 80 |
| B | 2,000 | 73 |
| C | 5,000 | 90 |
| D | 6,000 | 85 |
| E | 9,000 | 70 |
| F | 4,000 | 84 |
| G | 8,000 | 86 |
At what price are the shares sold?
A
90
B
85
C
70
D
84
