The woods co. and the spieth co. have both announced ipos at $69 per share. one of these is undervalued by $16, and the other is overvalued by $6, but you have no way of knowing which is which. you plan to buy 1,800 shares of each issue. if an issue is underpriced, it will be rationed, and only half your order will be filled. a. if you could get 1,800 shares in woods and 1,800 shares in speith, what would your profit be?

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.