Use the Information for the Question(s)below

question 22

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.The number of new shares that EGI will issue is closest to:

• A)1.6 million.
• B)5.0 million.
• C)10 million.
• D)6.25 million.

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Definitions:

Country A

Placeholder name used to refer to a hypothetical or unspecified country in discussions or analyses.

Domestic Output

The sum of the value of all products and services generated inside a country's boundaries over a certain time frame.

Pre-migration

Pre-migration pertains to the period or activities before migration, including planning, preparation, and decision-making processes related to moving from one location to another.

Immigration

Immigration is the act of moving to a foreign country to live permanently, often driven by factors like employment, education, family reunification, or escaping conflict.