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The financial manager of a well-regarded book publishing firm wishes to buy a small Internet publishing company to provide an avenue for sale of its materials online

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The financial manager of a well-regarded book publishing firm wishes to buy a small Internet publishing company to provide an avenue for sale of its materials online. In order to raise the funds to make this purchase, the financial manager decides to sell more stock in the company. How is the financial manager raising funds in this case?

A) By increasing the debt burden carried by the company

B) By raising the company's equity by encouraging new owners to take a stake in the company

C) By decreasing the ratio of equity to debt held by the company

D) By increasing the value of shares held by the existing owners of the company