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    Question

    ABC Ltd. offers its existing shareholders the right to

    buy one share for every four held at ₹100 when the current market price is ₹150. What is the theoretical value of a right?
    A ₹40 Correct Answer Incorrect Answer
    B ₹50 Correct Answer Incorrect Answer
    C ₹10 Correct Answer Incorrect Answer
    D ₹25 Correct Answer Incorrect Answer

    Solution

    Theoretical value of right 

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