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  |