Use the Information for the Question(s)below

question 15

Multiple Choice

Use the information for the question(s) below.
Electronic Gaming Incorporated (EGI) is a firm with no debt and its 20 million shares are currently trading for $16 per share.Based on the prospects for EGI's new handheld video game,management feels the true value of the firm is $20 per share.Management believes that the share price will reflect this higher value after the video game is released next fall.EGI has already announced plans to raise $100 million from investors to build a new factory.
-Assume that EGI decides to raise the $100 million through the issuance of new shares prior to the release of the new video game.The number of new shares that EGI will issue is closest to:

• A)5.0 million.
• B)6.25 million.
• C)10 million.
• D)1.6 million.

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Definitions:

Cardiovascular Function

The capacity of the heart and blood vessels to supply oxygen and nutrients to the tissues and remove waste products.

Pulmonary Function

The capacity and performance of the lungs, assessing how well the lungs work in terms of air movement and gas exchange.

Continuous Passive Motion

A rehabilitation technique using a device to move a joint gently and continuously to facilitate healing.

Analgesia

The absence or reduction of pain sensation without loss of consciousness, often achieved with medication or other therapeutic methods.