10 Which of the following factors would cause a company’s gearing ratio to fall?

1 A bonus issue of ordinary shares.

2 A rights issue of ordinary shares.

3 An issue of loan notes.

4 An upward revaluation of non-current assets.

A． 1 and 3

B． 2 and 3

C． 1 and 4

D． 2 and 4

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