What is the impact on a firm decision to raise capital

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Reference no: EM132528356

When additional shares of stock are issued, the earnings per share decreases (assuming no change in total earnings).

-How does this occur?

-What is the impact on a firm's decision to raise capital by equity, as oppose to debt?

Reference no: EM132528356

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

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