You are a U.S. investor who is trying to calculate the present value of E5 million cash inflow that will occur one year in the future. The spot exchange rate is S=$1.8839/ and the forward rate is F1=$1.8862/. The appropriate dollar discount rate for this cash flow is 5.32% and the appropriate discount rate is 5.24%. The present value of the 5 million cash inflow computed by first discounting the s and then converting into dollars is closest to: $8,943,695 $8,950,495 $8,954,615 $8,961,420 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 hand-held 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: 10 milition 5.0 million 6.25 million 1.6 million