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Your corporation needs additional capital to fund an expansion. Discuss the advantages and disadvantages of raising capital through the issuance of stock. Would debt be

  1. Your corporation needs additional capital to fund an expansion. Discuss the advantages and disadvantages of raising capital through the issuance of stock. Would debt be a better option? Why or why not?
  2. Why would a company repurchase its own stock? Provide at least two examples.
  3. What types of transactions reduce owners equity? What types of transactions reduce retained earnings? What do they have in common?
  4. Should investors rely on EPS as an investing tool? Why or why not?

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