单选题

Drumlin Co has $5m of $0.50 nominal value ordinary shares in issue. It recently announced a 1 for 4 rights issue at $6 per share. Its share price on the announcement of the rights issue was $8 per share.
What is the theoretical value of a right per existing share?

【正确答案】 B
【答案解析】

Value of a right = ((5m x $8 + 1.25m x $6)/6.25 m – $6)/4 shares = $0.4 per share.