Is it better for a public company to borrow or issue stock?

Question

Is it better for a public company to borrow or issue stock?

Answer 1

There are too many factors to consider. It depends on what they need the money for, the interest rate they can get on borrowed money, the price of their stock in the market, the cost associated with a placement of additional shares, shareholder restrictions on selling additional shares, etc.

Answer 2

If they don't finance their operations with debt then they probably don't expect a significant increase in PPS over the next few years. IMO

This is not a rule, as another poster said, there are many factors.