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select the 2nd arrow down on the toolbar should be white click away from your art work so nothing is selected and then go back and click on 1 of the letters and it should just select that letter. Then use the black arrow and select 1 of the middle anchor points or the 1s that are white not the solid cyan colour and resize the letter by dragging 1. THen go to effect > distort and transform > free transform job done however it is fiddly maybe an easier way.