Answer:
$19,700
Explanation:
The total proceeds from the auction will be calculated as follows:
A. 200 shares for $40 = 200 shares * $40 = $8,000
B. 300 shares for $39 = 300 shares * $39 = $11,700
This makes a total of 500 shares at a total proceeds of $19,700
In Dutch auction method rate per share is noted by the auctioneers to calculate the highest proceeds which can be generated through the auction. The bid from the highest rate are entertained first and in this case bidder A and B are selected.
