Question

Bakers' Town Bread is selling 1,500 shares of stock through a Dutch auction. The bids received are as follows: 200 shares at $17 a share, 400 shares at $15, 700 shares at $14, 400 shares at $13, and 200 shares at $11 a share. How much cash will the company receive from selling these shares of stock?

Answer 1

Answer:

$19,500

Explanation:

A Dutch auction is one of many common Auction types to buy or sell goods. Most generally, it means an auction where the auctioneer starts with a high selling price and decreases it until some buyer accepts the offer or arrives at a fixed reserve price.

Therefore in the given case, the cash received by the company from selling the shares of stock is

= 1,500 shares × $13

= $19,500

The $13 represent the highest bid price