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NEW QUESTION: 1
A. Option E
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C. Option D
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Which one of the answers is not an examples of entity representation?
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NEW QUESTION: 3
MNO is listed on its local stock exchange. It has a high level of gearing compared to the industry average as a result of rapid expansion funded by debt. The directors of MNO would like to reduce the level of gearing by raising equity to fund the next expansion project. The directors are considering whether to use a placing of new shares or a rights issue.
Which of the following statements is true?
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C. A rights issue would not need to be underwritten because the risk of the shares not being taken up is small compared to a placing.
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