Idle Time Gaming,Inc Has Reached a Point in Its Life

question 66

Multiple Choice

Idle Time Gaming,Inc has reached a point in its life 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:

Close Substitutes

Goods or services that can easily replace each other in consumption due to their similar characteristics.

Families' Budgets

Financial plans created by families to manage their income, expenses, savings, and investments over a specific period.

Demand Elastic

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with high elasticity indicating a significant response.

Demand Inelastic

Describes a situation where the quantity demanded of a good or service is relatively unaffected by changes in its price.