Scenario 1: B's existing public equity and future EPS is diluted by the new issue, and the market cap should remain similar. This is factually false. Ask anyon

Scenario 1: B's existing public equity and future EPS is diluted by the new issue, and the market cap should remain similar. This is factually false. Ask anyone with a background in finance and they will tell you so. Scenario 2: A's share price now has a dividend stream implying future returns, which will increase the future value of the shares. If companies A and B start off with the exact same market cap, and generate the exact same profits every year, and A keeps paying off the profits in the form of dividends, and B refuses to do so and hoards the profits in its bank account, B's market cap will keep rising further and further ahead of A's market cap. Again, this is a basic financial fact, and anyone with a background in finance will tell you so.