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NEW QUESTION: 1
A. Option D
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C. Option B
D. Option E
E. Option A
Answer: C,E
NEW QUESTION: 2
Which one of the answers is not an examples of entity representation?
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B. Icons
C. Event Frames
D. Theme Lines
Answer: A
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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B. The administration costs associated with a placing are usually more expensive than a rights issue because less investors are involved.
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.
D. The directors must use a placing before offering the rights issue to existing shareholders.
Answer: A
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