Raj industires limited offers equity shares to its existing shareholders at...

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Raj industires limited offers equity shares to its existing shareholders at the rate of 2 shares for every 5 shares held by them. If the right issue price is Rs. 180 per share and the market value is Rs. 200 per share, then the value of a right is

A. Rs. 20

B. Rs. 180

C. Rs. 200

D. Rs. 40

Answer: Option A

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