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If Sybil Ltd Issues Shares with a £1 Nominal Value

Question 1

Multiple Choice

If Sybil Ltd issues shares with a £1 nominal value, for £2 per share, then the gearing proportion and the acid test ratio will be affected as follows:


A) Gearing will increase and the acid test ratio will reduce.
B) Gearing will reduce and the acid test ratio will reduce.
C) Gearing will reduce and the acid test ratio will increase.
D) Gearing will increase and the acid test ratio will increase.

Correct Answer:

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