Question

Avinash Ltd needs approves to raise capital through rights issue to its existing shareholders in the ratio of 1:2. If, the market value of the share is Rs. 220 and the company is offering one share of Rs. 160 each under rights issue, what is the value of the right offered by the company?

A Rs.0
B Rs.20
C Rs.40
D Rs.60
E Rs.100
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