Stockholders of a company may be reluctant to finance expansion through issuing more equity because leveraging with debt is always a better idea. their earnings per share may decrease. the price of the stock will automatically decrease. dividends must be paid on a periodic basis.
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Home » Business » Stockholders of a company may be reluctant to finance expansion through issuing more equity because leveraging with debt is always a better idea. their earnings per share may decrease. the price of the stock will automatically decrease.