Which one or more of the following will be the effect when a company makes a rights

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Which one or more of the following will be the effect when a company makes a rights issue of one for every three ordinary shares?

(a) The company will have more investments

(b) The company’s liquidity will improve

(c) The company’s capital and reserves will increase

(d) The company’s share premium balance may remain unchanged or increase

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Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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