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Idle Time Gaming,Inc Has Reached a Point in Its Life

Question 235

Multiple Choice

Idle Time Gaming,Inc has reached a point in its life where it needs several million dollars in order to expand and follow its strategic plan.In negotiations with the investment banker,they agree to issue 40 million shares of common stock,at $22/share.If the Investment Banker's fee for underwriting the total sale is 6.82%,what is the discounted price that the investment bank is willing to pay Idle Time for the shares?


A) Approximately $300,000,000
B) Approximately $820,000,000
C) Approximately $ 880,000,000
D) Approximately $88,000

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