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The earnings per share of a company decreases if the additional capital it wanted was obtained by issuing additional shares of stock. (a) Explain how

The earnings per share of a company decreases if the additional capital it wanted was obtained by issuing additional shares of stock.

(a) Explain how this phenomenon comes about.

(b) Please also discuss how this decrease in EPS would affect a company's decision whether to issue equity (shares of stock) or debt (a bond issue) for raising capital.

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