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    Question

    Which among the following is the correct formula for

    value of right under the rights issue?
    A Market Price тАУ Average price of a share including the right share Correct Answer Incorrect Answer
    B Market Price тАУ Average price of a share excluding the right share Correct Answer Incorrect Answer
    C Right Price тАУ Average price of a share including the right share Correct Answer Incorrect Answer
    D Right Price тАУ Average price of a share excluding the right share Correct Answer Incorrect Answer
    E Face value of the share Correct Answer Incorrect Answer

    Solution

    Value of right = Market Price тАУ Average price of a share including the right share

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