1. Mitre Inc would like to finance a new expansion by issuing a new common stock. The corporation existing common stock currently sells for $24.50. Management believe that they can issue new common stock at this price, incurring flotation cost of 4% of current market price. What is the stocks net market price (net proceeds)?
2. Describe the worker's compensation system in the state of Louisiana. What are the benefits to business of having a workers’ compensation system? Are there any drawbacks to the system or reforms you believe should be implemented and why?