Use the Information for the Question(s)below

question 24

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 wait until after the release of the new video game before they raise the $100 million through the issuance of new shares.EGI's share price following the release of the new video game will be closest to:

• A)$18.00.
• B)$20.00.
• C)$16.00.
• D)$19.00.

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Definitions:

Class Consciousness

The awareness of one's social class and the sense of shared interests with others in the same class, often in contrast to opposing classes.

Functional Imperatives

Fundamental needs that must be met in any social system for it to survive and operate efficiently, such as adaptation, goal attainment, integration, and latency.

Parsons

An influential sociologist known for his work on social action, systems theory, and for contributing to the development of functionalism.

Assimilation

The process by which individuals or groups adopt the culture, norms, and practices of another society, often losing their original identity.