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a) Explain two circumstances under which dilution of earnings might be acceptable to the shareholders of one of the companies in a take-over deal. (4

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a) Explain two circumstances under which dilution of earnings might be acceptable to the shareholders of one of the companies in a take-over deal. (4 marks) b) What are the advantages and disadvantages of a rights issue from the point of view of: i) The issuing company? (3 marks) ii) The shareholders

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