Appu posted an Question
June 11, 2021 • 18:40 pm 1 points
  • UGC NET
  • Commerce

A ltd has a share capital of 5000 equity shares of rs100 each having a market value of rs150 per share .the company wants to raise additional funds of rs 1,20

A ltd has a share capital of 5000 equity shares of rs100 each having a market value of rs150 per share .the company wants to raise additional funds of rs 1,20000 and offers to the existing shareholders the right to apply for a new share at rs120 for every 5 share held what would be the value of right

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  • Priya gulani best-answer

    market value of share already held 5*150=. 750 add price to be paid for buying one share 120 total shares (6) = 870 average price 870/6= 145 value of right = market value - average price 150 - 145 = 5

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