1. Dilution impacts the equity owners of a company and during lecture we learned there is good dilution and bad dilution, explain the difference. [1 point) I 2. Name the two types of securities that we discussed during lecture that may cause dilution and explain why, Also generally describe the method that each security would use to determine the dilutive effect [2 points] 3. Company A has 4,000,000 shares of common stock issued and outstanding and the current market price of their common stock per share is $80. Company A issued stock options with an average exercise price of $90 per share for 1,000,000 common shares and stock options with an average exercise price of $55 per share for 500,000 common shares. Compute the amount of additional dilutive share of common stock using the treasury method. You must show your work for credit. [3 points)