Assume that your closely-held corporation, currently issuing only ordinary shares of stock, is seeking to expand by opening an additional branch. You and the other members of the Board of Directors (BOD) are deliberating getting additional funding through (1) issuing preference shares or (2) publicly trading shares of stock.

a. What factors would you and the other members of the BOD consider in choosing between both options above?

b. Based on your assessment in (a), which is the better option? Why? [Note: If a third option is the best, you may include it here and provide the basis for your decision.]