Investment bank in charge of the operation

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Reference no: EM133114636

CNR is listed on the stock exchange thanks to an open price offer (Dutch Auction). The investment bank in charge of the operation received the following buy orders:

Price of one action (in $)

Number of actions asked

39.0

50,000

38.5

25,000

38.2

25,000

38.0

100,000

37.5

125,000

37.0

75,000

36.5

150,000

36.0

240,000

35.5

80,000

35.0

125,000

34.5

130,000

34.0

150,000

33.8

125,000

33.5

80,000

33.0

75,000

32.5

200,000

a) What will the IPO price be if the offer is for 1 million CNR shares?

b) How much CNR will it raise from its IPO if the offer is for 1.25 million shares (instead of 1 million shares)?

PS: IPO stands for Initial offering Price.

Reference no: EM133114636

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