Earnings Per Share Decreases

Read:Case Studies and Problems in Finance [I attach the file below]
For a Paper:During this week, we found that when additional shares of stock are issued, the earnings per share decreases (assuming no change in total earnings).For your paper, in at least three well-composed paragraphs, please explain how this occurs and what the impact on a firm’s decision to raise capital by equity, as oppose to debt.
***Be sure to use in-text citation and provide references for your sources, including textbooks.