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Let me clarify to the elementary learner. If a company looks to do expansion, they require capital ($$) to deploy. What are the ways a company can raise $ ? Actually I can't believe i'm questioning this as every finance major (and thus every Financial Adviser) should know the main ways for raising capital.
i) Borrowing direct from the bank or from external entities
ii) Issuing Junk Bonds
iii) Issuing more shares ; common or preferred, and
iv) Retained Earnings or Shareholder's Equity.
Which one poses the least impact on the state of the company's finances? Ding Ding! it would be the latter, using after tax profits it's retained in equity. But The Warehouse group didn't do that. No no, for decades they dished out a stupid 5 or 6% dividend policy while doing the worse, issuing more common shares.
There is one other way to create new equity. Simply watch it materialise 'out of the ether' as evidenced by the increasing underlying value of existing assets on the books. This is what I have termed 'thin air capital' creation, and this is how Mercury Energy funds building their new power stations.... but I digress.