11 Which of the following statements a

11 Which of the following statements are correct?

A1 A company might make a rights issue if it wished to raise more equity capital.
B2 A rights issue might increase the share premium account whereas a bonus issue is likely to reduce it.
C3 A bonus issue will reduce the gearing (leverage) ratio of a company.
D4 A rights issue will always increase the number of shareholders in a company whereas a bonus issue will not.
EA 1 and 2
FB 1 and 3
GC 2 and 3
HD 2 and 4

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