Question

8. Luther Industries is in the process of selling shares of stock in an auction IPO. At the end of the bidding period, Luther's investment bank has received the following bids:

   

Price ($)	Number of Shares Bid
$19.40	50,000
$19.25	25,000
$19.10	25,000
$19.00	100,000
$18.75	125,000
$18.50	75,000
$18.25	150,000
$18.00	250,000
$17.75	50,000
$17.60	100,000
$17.35	50,000
$17.15	100,000
$16.90	100,000
$16.75	75,000
$16.50	75,000
$16.25	200,000

What will the offer price of these shares be if Luther is selling 1 million shares?

Answer 1