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Earnings per share of a company decreases if the additional capital it wanted was obtained by issuing additional shares of stock. In at least three well composed paragraphs, please explain how this phenomenon comes about. Please also discuss how this decrease in EPS would affect a company’s decision whether to issue equity (shares of stock) or debt (a bond issue) for raising capital.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92375889

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