Economics · Corporate Finance
Which of the following statements are correct regarding bonus and rights issues? 1. A bonus issue results in an increase in the cash at bank balance. 2. A bonus issue is a capitalization of equity reserves, often using the share premium account. 3. A rights issue is usually offered to existing shareholders at a price lower than the current market value. 4. A rights issue will decrease the number of shares in issue to make them more marketable.
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2 and 3
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