... fact they are all considered vital for the company and they must all be undertaken to maintain its competitive position in the market. The company should find a way of raising capital with a cost that will allow the acceptance of all these projects. The company has been able throughout the past to maintain a capital structure that was mostly made of equity and partially of debt. However, for these projects, a restructuring (50 % debt 50 % equity) was required. This means an important increase in the proportion of debt that might increase the risk for OMD due to more leveraging, and as a result, cause the stock price to decrease due to more risk. Since the company will be required to pay interest on debt, then its earnings left for common stock will decrease. Therefore, the increase in debt in normal cases results in a decrease of the ...

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