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.

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Definitions:

Projected Job Market

An estimation or forecast of the future demand and availability of jobs within a certain sector or economy.

Internal Factor

refers to elements within an organization or individual that can influence decisions, behaviors, and outcomes, such as values, resources, and goals.

Appropriate Job

An employment position that is well-suited to an individual's skills, interests, and qualifications.

Prospecting Cover Letter

A type of cover letter sent to inquire about potential job opportunities or to introduce oneself to a potential employer, even when no job has been advertised.