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What are the pluses and minuses of business expansion through retained earnings or through stocks?

I am having trouble digging up some info for a question on my homework for Managerial Finance. Any suggestions? Here is the prolblem... You are the CFO of an established, publicly traded firm. Your firm needs to raise an additional $10 million for business expansion. You could finance the expansion through retained earnings or through stock. Discuss the plusses and minuses of each funding source. What source would you recommend to the board of directors and why?

Asked By: Nicholas Sandvig - 10/1/2008
Best Answer - Chosen by Asker
You have the cash to expand - you spend that cash and you no longer have a cash cushion should other events occur... More
Answered By: justwondering - 10/1/2008
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