Gearing or Listing?

If you need 1million dollars to expand your business, do you get it listed? or do you borrow money from bank?

Financial and Management Accounting seems to suggest the latter as compared to one company which gets as much share in the loan amount, you will have bigger earning per share in good times and average times. In bad times, the company without the loan will trump the company who pays annual interest rate.

I think as a stakeholder I prefer the company with low gearing. It such a waste that money has to paid on such unnecessary manner like interest rate when you can transfer the earning to share capital or pass on the earnings as dividend. I might have diluted share, but I am willing to pay extra to buy extra share of a company I believe in.