Answer:
$110,000
Explanation:
No of Shares Price Total number of shares
500 22.50 500
2500 22.20 3000
3300 22.00 6800
5500 21.00 12300
In Dutch auction, share are allotted from highest no. of share to lowest at the price where all the shares are taken. So in this case, highest number of shares are asked by Bidder D which is 5500 shares (available 5000 shares). The bidder will be getting shares at $22 because this is the price when all the shares were taken.
Hence, the amount the firm will receive from this auction = 5,000 *22 = $110,000
