Calculate the value of rights if: Number of rights shares offered (n) 3,000 No. of shares held (m) 1,800 Ex-right price (P ex) ₹ 24 Right offer price (P of) ₹ 21 Face value of shares ₹ 10

Calculate the value of rights V r = n(P ex - P of ) / m n = Number of rights shares offered = 3,000 m = No. of shares held = 1,800 P ex = Ex-right price = ₹ 24 P of = Right offer price = ₹ 21 V r = (3,000 / 1,800) × (24 - 21) V r = (3,000 / 1,800) × 3 V r = 1.6667 × 3 = ₹ 5