General Studies · Financial Management

Identify the correct statements in the context of equity financing: A. Borrowing limit increases as a consequence of an increase in the number of shares. B. Ordinary shares are generally not redeemable. C. Issue of new shares dilutes the EPS if the profits do not increase immediately in proportion to the increase in the number of shares. D. A company is not legally obliged to pay dividends. E. Ordinary shares are less risky from an investor's perspective.