A CFO is proposing that his company issues equity to reduce leverage because the company’s current leverage ratio is 40% and the CFO believes that lower leverage will increase company value. However, a board member, who is a CFO of a different company, said that despite having a high leverage ratio, the company is mature and highly profitable, and has an investment-grade credit rating (rating of A-). The board member is arguing that the company doesn’t need to issue equity to reduce debt.

Question: Who is right (the CFO or the board member)?