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When a company makes a rights issue of equity shares which of the following effects will the issue have?

(1)    Working capital is increased
(2)    Gearing ratio is increased
(3)    Share premium account is reduced
(4)    Investments are increased

A     (1) only
B     (1) and (2)
C     (3) only
D     (1) and (4)

A

?

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a

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[em02]

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THANKS

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b

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 a

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a

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d

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B

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