Use the Information for the Question(s) Below

question 66

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 hand held 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) 10.0 million
• D) 1.6 million

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Definitions:

Policy Assessment

The process of evaluating the effectiveness, outcomes, and impacts of public policies.

Social Policy Practice

The application of social policy principles and theories in real-world settings, often involving the development and implementation of programs aimed at improving societal welfare.

Data Gathering

The process of collecting information and facts for the purpose of analysis to support decision-making or research.

Interviews

A method of gathering information by asking questions verbally, often used in research, journalism, or employment selection.