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Obtained by issuing additional shares of stock

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Reference no: EM132528352

Earnings per share of a company decreased if the additional capital it wanted was obtained by issuing additional shares of stock.

-How does this phenomenon comes about.

-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.

Reference no: EM132528352

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