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.

---

Definitions:

Unsafe Behaviours

Actions or conduct by individuals that can lead to accidents or injuries in the workplace, often violating established safety protocols.

Emotional Stability

A psychological trait marked by consistency in behaviors and moods, displaying resilience to stress and anxiety.

Sorority Sisters

Members of a female student society in a university or college, characterized by a system of mutual support and a set of shared rituals and symbols.

Conscientiousness

A personality trait characterized by being diligent, careful, organized, and dependable.