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John the CFO of Tech City is proposing that his company issue equity to reduce its current debt, because Tech City's current leverage ratio is

John the CFO of Tech City is proposing that his company issue equity to reduce its current debt, because Tech City's current leverage ratio is 45% and John believes that the lower leverage will increase Tech City's value. Tech City's credit rating is BB. One of the board members complained about John's strategy, arguing that issuing equity will increase the number of shares outstanding and create dilution. Of the two who is right John the CFO or the board member?

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