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Suppose Sally Rubber Co. is going public and, based on the bookbuilding process, decides it...

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Suppose Sally Rubber Co. is going public and, based on the bookbuilding process, decides it will be issuing 500 ,000 shares of cormmon stock to raise capital to fund the company's proposed expansion. Suppose a Dutch auction (an auction an which the auctioneer begins with a high asking price and lowers it untal some bidder accepts the price) is used to allocate shares in the Sally Rubber Co. IPO. The following table shows the number of shares requested by potential bidders. To sell the 500,000 shares, Sally Rubber Co.is 1P0 minimum offer price shoold be The total armount of furding raised will be Given the typicat 7 percent uransaction cost due to the issuing firm, the 1 io would result in a transactian cost of

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