Question
Brundle Ltd is a reseller of dried foods, which is a burgeoning market. The company requires funding to expand. With inflation expectations increasing rapidly, the
Brundle Ltd is a reseller of dried foods, which is a burgeoning market. The company requires funding to expand. With inflation expectations increasing rapidly, the owners wish to raise equity rather than debt. If the company were to raise a significant amount of equity from purely new sources, with all else staying the same as before, what would you expect would change for the company? Choose the most correct option below. The companys ... .
a. EPS would increase, beta would increase and the current control would be diluted
b. EPS would decrease, beta would increase and the current control would be consolidated
c. EPS would decrease, beta would decrease and the current control would be diluted
d. EPS would decrease, beta would decrease and the current control would be consolidated
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