Idle Time Gaming, Inc

question 321

Multiple Choice

Idle Time Gaming, Inc., has reached the point where it needs several million dollars in order to expand and follow its strategic plan. In negotiations with the investment banker, they agree to issue 40 million shares of common stock, at $22/share. If the investment banker's fee for underwriting the total sale is 6.82%, what is the discounted price that the investment bank is willing to pay Idle Time for the shares?

• A) Approximately $300,000,000
• B) Approximately $820,000,000
• C) Approximately $ 880,000,000
• D) Approximately $88,000

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Definitions:

Utility Function

An economic tool that measures the preference level of consumers for different combinations of goods and services.

Private Consumptions

Private consumption refers to the spending on goods and services by individuals and households in an economy, excluding government expenditure.

Private Consumptions

The spending by households on goods and services, excluding purchases of new housing but including healthcare, education, and entertainment.

Majority Vote

A decision-making rule where the option that receives more than half of the votes is chosen.