what will happen to the earnings per share (EPS) and the gearing?

Question

If a company issues more shares, then, all other things remaining the same, what will happen to the earnings per share (EPS) and the gearing?

Answer 1

At a guess...

The gearing will go down, as gearing is the level of debt compare to equity capital. More shares will mean more equity capital.

EPS will go down, in the short-term at least. Simply put, upon issue there will be X more shares, but the profit will be unchanged until the equity capital can be actually converted into profit.

Answer 2

Both reduced ..