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The Woods Company and the Spieth have both announced an initial public offering (IPO) at $40...

The Woods Company and the Spieth have both announced an initial public offering (IPO) at $40 per share. One of these is undervalued by $9, and the other is overvalued by $4, but you have no way of knowing which company is undervalued and which company is overvalued. You plan to buy 1,000 shares in Woods and 1,000 shares in Spieth. If an issue is undervalued, and only half of your shares will be filled. If you could get 1,000 shares in Woods and 1,000 shares in Spieth, what would your profit be? What profit do you actually expect? What principle have you employed?

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
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