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

The correct answer is A. Rs. 20.

The value of a right is the difference between

the market value of the share and the right issue price. In this case, the market value of the share is Rs. 200 and the right issue price is Rs. 180, so the value of a right is Rs. 20.

Option B is incorrect because it is the right issue price. Option C is incorrect because it is the market value of

the share. Option D is incorrect because it is twice the value of a right.