Inland Construction is considering a project which requires the purchase of $637,500 of fixed assets. The net present value of the project is $5,000. Equity shares will be issued as the sole means of financing the project. The following table summarizes the current information on the firm.

Number of shares outstanding	90,000
Book Value	$850,000
Market Value	$2,250,000
Net Income	$652,000

Given the above information, which of the following statements is correct?

I. there is no book value dilution after the equity issuance

II. there is no market value dilution after the equity issuance

III. there is book value dilution after the equity issuance

IV. new book value per share after the equity issuance is lower than $12

A. I only

B. I and II only

C. II and III only

D. III and IV only

E. I, II and IV only