Agyawadwo Ltd wants to raise equity capital for a new project. Upon some financial consultation with ABC financial advisors, they have learnt that the right issues, retained earnings and private placement are very popular and important methods for raising equity capital but there is disagreement among management as to which method should be used.

Required;

a) Discuss how these three methods compare broadly in terms of the amount that can be raised, the cost of issue, dilution of control, degree of under-pricing, and market perception?

b) Examine any three factors that could influence a business for the choice of equity finance or debt finance.