Which of the following statements are correct? 1 A company might make a rights issue if it wished to raise more equity capital. 2 A rights issue might increase the share premium account whereas a bonus issue is likely to reduce it. 3 A bonus issue will reduce the gearing (leverage) ratio of a company. 4 A rights issue will always increase the number of shareholders in a company whereas a bonus issue will not. A 1 and 2 B 1 and 3 C 2 and 3 D 2 and 4 A |