RAJ Inc Would Like to Issue One Million Common Shares and and Has

Multiple Choice

RAJ Inc. would like to issue one million common shares and has an unpublished reserve price of $4.75. The company's investment dealer received the following response to its tender offer. 200,000 shares could be sold at $5.45, 350,000 at $5.25, 350,000 at $5.05, 600,000 at $4.90, 525,000 at $4.75, 725,000 at $4.50 and 700,000 at $4.25. What is the resulting striking price and the distribution of shares to each shareholder?

A) $5.45 with the one investor taking all that are available.
B) $5.05 with each investor allotted 4 for each 5 tendered.
C) $4.88 with each investor allotted 2 shares for each 5 tendered.
D) $4.75 with each investor receiving 4 for every 5 tendered.
E) $4.90 with each investor allotted 2 for each 3 tendered.