Problem 3: Initial Public Offering (30 points) Similar to P2-3 On September 22, 2020, Watch Co., completed its IPO on the NYSE. Watch Co. sold 10,124,000 shares of stock at an offer price of $9.50 with an underwriting discount of $.73 per share. The closing stock price on the first day of trading on the secondary market was $13.00 and 61,000,000 shares were outstanding. Round answers to nearest hundredth. a. Calculate the total proceeds. Total proceeds - (IPO offer price) x (IPO shares issued) - b. Calculate the percentage underwriting discount. (Underwriting discount per share)/(Offer price) = c. Calculate the dollar amount of the underwriting fee. Underwriting fee =($.73) * (shares of stock) d. Calculate the net proceeds. Net proceeds - Total proceeds (from answer a) minus underwriting fee (from answer c) = e Calculate the IPO underpricing. (Market price-Offer price) / Offer price f. Calculate the market capitalization Market price of stock x number of shares outstanding