Item1 10 points my workCheck My Work button is now enabledItem 1 Louisiana Timber Company currently has 2 million shares of stock outstanding and will report earnings of $6.79 million in the current year. The company is considering the issuance of 1 million additional shares that will net $39 per share to the corporation. a. What is the immediate dilution potential for this new stock issue

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan