what financing method should they use:

Leasing arrangement

Long-term bonds

Debt with warrants

Friends or realatives

Preferred stock(noncomvertable)

common stock:nonrights

common stock : rights offering

convertible debentures

Factoring (selling a firms accounts receivable)

norms for the of 45 percent to 65 percent, preferred stock in equity in the range of 25 percent to 45 percent. Timberland currently has total assets of $1.5 billion financed as follows: $900 million debt, $75 million preferred stock, and $525 million common equity. The company plans to raise an additional $37 million at this time. C. Ripe and Fresh Canning Company: Ripe and Fresh Canning Company is a large operation located in Valdosta, Georgia, that purchases peaches and other fruits from farmers in Georgia, Florida, South Carolina, Alabama, and Kentucky. These fruits are then canned and sold on 60-day credit terms, largely to food brokers and small retail grocers in the same five-state area. The company's plant and equipment have been financed in part by a mortgage loan, and this is the only long-term debt. Raw materials (fruits) are purchased on terms calling for payment within 30 days of receipt of goods, but no discounts are offered. Because of an increase in the popularity of vegetables and fruits, canned fruit sales have increased dramatically. To finance a higher level of output to take advantage of this increased demand, Ripe and Fresh will need approximately $550,000. D. Piper Pickle Company: Piper Pickle Company is a major packer of pickles and pickled products (horseradish, pickled watermelon rinds, relishes, and peppers). The company's stock is widely held, actively traded, and listed on the New York Stock Exchange. Recently, it has been trading in the range of $18 to $22 a share. The latest 12 months' eartings were $1.70 per share. The current dividend rate is 64 cents a share, and earnings, dividends, and the price of the company's stock have been growing at a rate of about 7 percest over the last few years. Piper Pickle's debt ratio is currently 42 percent versus 25 percent for other large pickle packers. Other firms in the industry, on the average, have been grow" ing at a rate of about 5 percent a year, and their stocks have been selling at a pricelearning ratio of about 10. Piper Pickle has an opportunity to begin growing its own cucumbers. which would result in a substantial cost savings and reduce the risk involved in having to compete for cucumbers in the open market. This vertical integration would require $20 million in cash for the necessary farms and equipment