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:

Country Club

An approach to management characterized by a high concern for people but low concern for production, leading to a comfortable and friendly atmosphere but potentially lower levels of productivity.

Interpersonal Relationships

Interpersonal Relationships refer to the connections and interactions between individuals, characterized by communication, understanding, trust, and mutual respect.

Behavioral Approach

A method emphasizing the study of observable and measurable behaviors over internal mental states.

Leader Actions

Activities and decisions taken by a person in a leadership position to influence and guide a group towards achieving certain objectives.