FIN 4234 – Spring 2016
Mike Kender

Assignment 1

Answer the following questions about the initial public equity offering that was done by Square, Inc. in November 2015. Use the prospectus for the offering to answer most of the questions below. Here is a link to the prospectus: http://d1lge852tjjqow.cloudfront.net/CIK-0001512673/1df03bf9-8210-41fb-b6e8-cd9ba3a19260.pdf Question 1
How many shares of stock were being sold to the public? How many were being sold by the company? How many were being sold by existing shareholders?

How many classes of common stock does the company have? Which class of common stock is being sold by the company in the offering? How many votes per share do the shares being sold have?

Question 2
At what price were the shares sold? What % of the proceeds were paid out to the investment banks working on the deal?

Question 3
Who were the lead underwriters for the deal? How many firms worked on it?

What % of the shares were sold by the lead underwriters?
Question 4
What was the use of proceeds in the deal?

Question 5
What are the first 3 risk factors that are listed in the prospectus?

Question 6
After the shares were sold in the offering, how many common shares did Square have outstanding? How many of each class?

Question 7
What is Square’s ticker symbol? Which exchange will its shares trade on?

Question 8
After the deal is completed, how much equity book value did Square have? What was the company’s equity market capitalization after the deal was completed (assuming the offering price and that each class of shares trades at the same price)?

What is Square’s current share price? What is its current equity market capitalization?

Question 9
Was there a Green Shoe in the deal? If so, how big was it?

Question 10
What is Square’s business? In other words, what products or services