if a company issues more common stock, what do you as an investor prefer either reinvesting in pp&e, or paying off debt.
Hello. Please help me out. I am stuck w/ this question.
There are two companies trying to issue more common stock.. Company A tries to issue stocks to reinvest in plant which would increase its asset. Company B tries to issue stocks to pay off its debt which would decrease its liability.
all else being the same.
If you have to purchase stocks from one of the firms, Which one would you prefer, A or B? Could you please reason out why you would choose one?
THANK YOU SO MUCH!!!!!!!!!!
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