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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.EGI's share price following the release of the new video game will be closest to:
Euphoria
An intense state of happiness and well-being, sometimes beyond what is considered normal.
Smoking
Smoking is the act of inhaling and exhaling the smoke produced by burning tobacco in cigars, cigarettes, or pipes, often associated with health risks.
E-cigarettes
Battery-operated devices that deliver nicotine with flavorings and other chemicals to the lungs in vapor instead of smoke.
Nicotine Withdrawal
The range of symptoms experienced when quitting or reducing intake of nicotine, including cravings, irritability, and anxiety.
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