The Woods Co. and the Garcia Co. have both announced IPOs at $43 per share. One of these is undervalued by $10.50, and the other is overvalued by $5.00, but you have no way of knowing which is which. You plan on buying 1,150 shares of each issue. If an issue is underpriced, it will be rationed, and only half your order will be filled.

Requirement 1:

Assuming you could get 1,150 shares in Woods and 1,150 shares in Garcia, what would your profit be?(Do not include the dollar sign ($).)

Profit

$

Requirement 2:

What profit do you actually expect? (Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).)

Expected profit

$