A company wishing to expand can obtain the necessary funds by borrowing on a long-term note payable or by issuing 50,000 shares of $10 par value common stock. Net income is estimated at $302,500 if the company borrows the funds, and $330,000 if the company issues stock. The company currently has 250,000 shares of common stock outstanding. If the company issues stock instead of borrowing funds, earnings per share would
A)decrease by $0.21.
B)decrease by $0.11.
C)increase by $0.21.
D)increase by $0.10.

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The Answer of A company wishing to expand can obtain the necessary funds by borrowing on a long-term note payable or by issuing 50,000 shares of $10 par value common stock. Net income is estimated at $302,500 if the company borrows the funds, and $330,000 if the company issues stock. The company currently has 250,000 shares of common stock outstanding. If the company issues stock instead of borrowing funds, earnings per share would
A)decrease by $0.21.
B)decrease by $0.11.
C)increase by $0.21.
D)increase by $0.10.

A Company Wishing to Expand Can Obtain the Necessary Funds