Company Secretary
354 Points
Joined February 2011
Ex-Right Value of a Share: P = MN+S / N+1
P = Market Value of Share ex-right
M = Cum-Market Price
S = Issue price of a new share
N = Number of existing shares required for getting one right share (in your case it is 1000/2000 = 0.5)
Hence,
P = M x 0.5+15 / 0.5+1
or, 18 = M x 0.5 + 15 / 0.5+1
Therefore, Ex- right value of share (P) = 24
Again,
Value of Right= Market value of Cum right share - Ex right value of share
i.e, 24-18 = 6
Alternatively, Value of Right (R) = M-S/N+1
= 24-15/0.5+1
= 6