If the business had the opportunity to triple sales and maintain the same profit margin by increasing plant capacity at a cost of $380,000, then, ignoring changes in the risk, to maximize the return to the shareholders (measured by net income / shareholders' equity) the business should finance this expansion by

Multiple Choice

- borrowing at a lower rate of interest than it earns on shareholder's equity

- not paying dividends for 2 years and using the savings at the end of that time

- issuing more common shares

- issuing more preferred shares

- None of the other alternatives are correct