Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.
Each question is worth 2 marks
Which of the following statements is correct?
A A bonus issue can be used to raise new equity finance
B A share repurchase scheme can increase both earnings per share and gearing
C Miller and Modigliani argued that the financing decision is more important than the dividend decision
D Shareholders usually have the power to increase dividends at annual general meetings of a company
Answer：
B
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