Calculate the value of right, if Number of right shares offered: 15,000 Number of shares held: 5,000 Ex-right price: ₹ 40 Right offer price: ₹ 24 Face value of share: ₹ 10
CS Executive · Capital Markets & Securities Laws · PYQS · December 2019
Calculate the value of right, if Number of right shares offered: 15,000 Number of shares held: 5,000 Ex-right price: ₹ 40 Right offer price: ₹ 24 Face value of share: ₹ 10
Answer & Explanation:
Calculation of Value of Right: Value of Right is calculated by the following formula: Value of Right = (Right Shares offered / Number of shares held) × (Ex-right price - Right offer price) Value of Right = (15,000 / 5,000) × (₹ 40 - ₹ 24) Value of Right = 3 × ₹ 16 Value of Right = ₹ 48
Topics: Rights Issue
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