A company wishing to expand can obtain the neccessary funds by


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May 30, 2016. A company wishing to expand can obtain the neccessary funds by borrowing on a long-term note payable or by issuing 50,000 shares of $10 par value ordinary shares. Net income is estimated at $302,500 if the company borrows the funds, and $330,000 if the company issues shares. The company currently has 250,000 shares of ordinary shares outstanding. If the company issues shares instead of borrowing funds, earnings per share would A) decrease by $0,11 B) increase by $0,21 C) increase by $0,10 D) decrease by $0,21 I know the answer is B) Increase by $0,21, but why? what are the calculations to get to this number and why ? HANGAN94
posted a question ยท May 30, 2016 at 8:44am

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