A company has decided to increase its existing share capital by making a rights issue to the
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A company has decided to increase its existing share capital by making a rights issue to the existing shareholders in the proportion of one new share for every two old shares held. You are required to calculate the value of the right, if the market value of the share at the time of announcement of rights issue is ₹24. The company has decided to give one share of ₹10 each at a premium of ₹2 each.
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To calculate the value of the right in a rights issue we need to determine the difference betwe...View the full answer
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