Question
A company announces rights issue in the ratio of 1:4. The face value of the share is Rs.10 and market value is Rs.70. If the rights issue is done at Rs.50, what is the value of the right?
Method 2: Find theoretical ex-rights price 
Therefore, Value of right = Market price – Theoretical ex-rights price = ₹70 – ₹66 = ₹4 More Basic Accounting Concepts Questions
- Which of the following statements about Net Owned Fund (NOF) requirement for ARCs is true?
- A CC account shows frequent excess drawings, decline in stock levels, delays in statutory payments and high turnover in sister concerns. These indicators m...
- What is the maturity period for Treasury Bills?
- What would be the real rate of interest If the money discount rate is 19% and Inflation is 12%
- An account has interest overdue 95 days, but principal serviced regularly. Stock statements not submitted for 4 months. What is the correct classification?
- A borrower shows continuous losses, erosion of net worth by 60%, irregular operations in CC account, and diversion of funds to group companies. This exposu...
- A company reported net profit before tax of Rs.36,100. It has raised debt capital of Rs.250,000 through 13% debentures. What is the interest coverage ratio...
- A company has opening balance of debtors of Rs.3 lakh. If the doubtful provision is 5% and discount is 2%, what is the net balance of debtors at the end of...
- Outstanding ₹100 cr. NCLT expected recovery in 3 years is ₹60 cr (NPV ₹45 cr). Borrower offers OTS ₹48 cr now. What is the best financial decision?
- A company shows Profit after Tax ₹14 crore, Depreciation ₹10 crore, Increase in Working Capital ₹6 crore and Term Loan repayment due next year ₹15 crore. W...
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
- 200 Questions with Detailed Solutions
- Section-wise Coverage (GA, English, Quant & Reasoning)