Chapter 2 Challenge Problem BUSFIN 1030 Due date October 1, 2023 Challenge problems must be completed in your own handwriting (i.e., no typed documents) and all relevant work necessary to support your answers must be shown. Once you have completed your challenge problem, please make digital images of any work and submit your file(s) via the Chapter 2 Challenge Problem Image File Submission link on Canvas under Module 1. Also, please complete the Chapter 2 Challenge Problem Questions on Canvas under Module 1. INSTRUCTIONS Nextracker (ticker: NXT) raised funds in the capital markets via an initial public offering (IPO) conducted in February 2023. Nextracker's final IPO prospectus filed with the SEC showed that Nextracker sold 26,600,000 shares of Class A common stock at an offer price of $24 per share and with underwriting discounts and commissions of $1.32 per share. EXERCISES 1. Calculate the total proceeds for Nextracker's IPO. 2. Calculate the total dollar amount of the underwriting discounts and commissions. 3. Calculate the percentage value of the underwriting discounts and commissions. 4. Calculate the net proceeds for Nextracker's IPO. Go to Yahoo Finance and find the first-day secondary-market closing price for Nextracker (NXT) on Feb 9, 2023. Under the Summary menu, you can find the closing price on Feb 9, 2023 by selecting Max for the chart and sliding your cursor to the far left over the date Feb 9, 2023 (the date is shown in the black bar above your cursor and the corresponding closing price is shown in the black indicator on the right side of the chart). Find Nextracker's final IPO prospectus dated Feb 10, 2023, by going to SEC.gov, FILINGS, Company Filing Search, Company and Person Lookup, Nextracker (NXT), View filings. Look for filing type 424B4 with filing date 2023-02-10, then click on the link (Open document). To confirm that you have the IPO prospectus, in the first few sentences on the cover you should see the following statements: "This is an initial public offering..." and "Prior to this offering, there has been no public market..." Scroll down to the Table of Contents and click on "Description of capital stock." Under the Description of capital stock determine the number of shares common stock (both Class A and Class B) that will be outstanding upon completion of the offering (excluding the underwriter's option to purchase additional shares). EXERCISES CONTINUED 5. Use the information provided on the front page of the IPO final prospectus to verify your answers to exercises 1,3 , and 4 above. 6. Based on the information on the front page of the IPO final prospectus, how many investment banks are in the underwriting syndicate? 7. Calculate the underpricing for Nextracker's IPO. 8. Calculate Nextracker's market capitalization at the close of the first day of secondarymarket trading. 9. Calculate the money left on the table in Nextracker's IPO. 10. Share any thoughts you might have regarding Nextracker's IPO. Chapter 2 Challenge Problem BUSFIN 1030 Due date October 1, 2023 Challenge problems must be completed in your own handwriting (i.e., no typed documents) and all relevant work necessary to support your answers must be shown. Once you have completed your challenge problem, please make digital images of any work and submit your file(s) via the Chapter 2 Challenge Problem Image File Submission link on Canvas under Module 1. Also, please complete the Chapter 2 Challenge Problem Questions on Canvas under Module 1. INSTRUCTIONS Nextracker (ticker: NXT) raised funds in the capital markets via an initial public offering (IPO) conducted in February 2023. Nextracker's final IPO prospectus filed with the SEC showed that Nextracker sold 26,600,000 shares of Class A common stock at an offer price of $24 per share and with underwriting discounts and commissions of $1.32 per share. EXERCISES 1. Calculate the total proceeds for Nextracker's IPO. 2. Calculate the total dollar amount of the underwriting discounts and commissions. 3. Calculate the percentage value of the underwriting discounts and commissions. 4. Calculate the net proceeds for Nextracker's IPO. Go to Yahoo Finance and find the first-day secondary-market closing price for Nextracker (NXT) on Feb 9, 2023. Under the Summary menu, you can find the closing price on Feb 9, 2023 by selecting Max for the chart and sliding your cursor to the far left over the date Feb 9, 2023 (the date is shown in the black bar above your cursor and the corresponding closing price is shown in the black indicator on the right side of the chart). Find Nextracker's final IPO prospectus dated Feb 10, 2023, by going to SEC.gov, FILINGS, Company Filing Search, Company and Person Lookup, Nextracker (NXT), View filings. Look for filing type 424B4 with filing date 2023-02-10, then click on the link (Open document). To confirm that you have the IPO prospectus, in the first few sentences on the cover you should see the following statements: "This is an initial public offering..." and "Prior to this offering, there has been no public market..." Scroll down to the Table of Contents and click on "Description of capital stock." Under the Description of capital stock determine the number of shares common stock (both Class A and Class B) that will be outstanding upon completion of the offering (excluding the underwriter's option to purchase additional shares). EXERCISES CONTINUED 5. Use the information provided on the front page of the IPO final prospectus to verify your answers to exercises 1,3 , and 4 above. 6. Based on the information on the front page of the IPO final prospectus, how many investment banks are in the underwriting syndicate? 7. Calculate the underpricing for Nextracker's IPO. 8. Calculate Nextracker's market capitalization at the close of the first day of secondarymarket trading. 9. Calculate the money left on the table in Nextracker's IPO. 10. Share any thoughts you might have regarding Nextracker's IPO