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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 wait until after the release of the new video game before they raise the $100 million through the issuance of new shares.The number of new shares that EGI will issue is closest to:
Bonds
Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, with terms defining the interest rate and mature date for repayment.
Muscles
Tissues in the body made up of fibers that contract to produce movement or maintain posture.
Energy of Activation
The minimum amount of energy required to start a chemical reaction.
Metabolic Pathway
A series of chemical reactions occurring within a cell that leads to the conversion of one substance into another, often resulting in the production of energy or cellular components.
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