Value of Right using New Shares Calculator

✖Number of New Shares refers to the quantity of additional shares issued by a company as part of a corporate action, such as a rights offering or a stock split.ⓘ Number of New Shares [n_ns]			+10% -10%
✖Market Price refers to the current value at which an asset, security, or commodity is traded in the open market based on supply and demand dynamics.ⓘ Market Price [MP]			+10% -10%
✖Issue Price of New Share is the price at which newly issued shares are offered to investors during a primary market offering or capital raising event.ⓘ Issue Price of New Share [IP]			+10% -10%
✖Total Number of All Shares is the sum of existing shares (old shares) and newly issued shares (new shares) following a corporate action or issuance.ⓘ Total Number of All Shares [n_total]			+10% -10%

✖Value of Right is the market-determined worth representing the theoretical value of the privilege to purchase additional shares at a specified price during a rights offering.ⓘ Value of Right using New Shares [V]

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Formula

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Value of Right using New Shares

Formula

`"V" = "n"_{"ns"}*("MP"-"IP")/"n"_{"total"}`

Example

`"1.6"="30"*("90"-"82")/"150"`

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Value of Right using New Shares Solution

STEP 0: Pre-Calculation Summary

Formula Used

Value of Right = Number of New Shares*(Market Price-Issue Price of New Share)/Total Number of All Shares
V = n_ns*(MP-IP)/n_total
This formula uses 5 Variables

Variables Used

Value of Right - Value of Right is the market-determined worth representing the theoretical value of the privilege to purchase additional shares at a specified price during a rights offering.
Number of New Shares - Number of New Shares refers to the quantity of additional shares issued by a company as part of a corporate action, such as a rights offering or a stock split.
Market Price - Market Price refers to the current value at which an asset, security, or commodity is traded in the open market based on supply and demand dynamics.
Issue Price of New Share - Issue Price of New Share is the price at which newly issued shares are offered to investors during a primary market offering or capital raising event.
Total Number of All Shares - Total Number of All Shares is the sum of existing shares (old shares) and newly issued shares (new shares) following a corporate action or issuance.

STEP 1: Convert Input(s) to Base Unit

Number of New Shares: 30 --> No Conversion Required
Market Price: 90 --> No Conversion Required
Issue Price of New Share: 82 --> No Conversion Required
Total Number of All Shares: 150 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

V = n_ns*(MP-IP)/n_total --> 30*(90-82)/150

Evaluating ... ...

V = 1.6

STEP 3: Convert Result to Output's Unit

1.6 --> No Conversion Required

FINAL ANSWER

1.6 <-- Value of Right

(Calculation completed in 00.004 seconds)

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Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

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< 18 Strategic Financial Management Calculators

Money Market Discount Rate

Go Money Market Discount Rate = (Year/Days of Maturity)*(Face Value of Money Market Instrument-Present Value of Money Market Instrument)/Face Value of Money Market Instrument

Effective Convexity

Go Effective Convexity = (Price of Bond When Yield is Decreased+Price of Bond When Yield is Increased-(2*Initial Price of Bond))/((Change in Curve)^2*Initial Price of Bond)

Add on Rate

Go Add on Rate = ((Year/Days)*((Amount Paid at Maturity Including Interest)-Present Value of Money Market Instrument)/(Amount Paid at Maturity Including Interest))

Change in Price of Full Bond

Go Percentage Change in Price of Bond = (-Annual Modified Duration*Change in Yield)+(1/2*Annual Convexity*(Change in Yield)^2)

Value of Right using New Shares

Go Value of Right = Number of New Shares*(Market Price-Issue Price of New Share)/Total Number of All Shares

Single Month Mortality

Go Single Month Morality = Prepayment for a Month/(Beginning Mortgage Balance for Month-Scheduled Principal Repayment for Month)

Value of Right

Go Value of Right per Share = (Stock Price-Right Subscription Price)/Number of Rights to Buy a Share

Cost of Equity

Go Cost of Equity = ((Dividend in Next Period/Current Share Price)+(Dividend Growth Rate*0.01))*100

Unlevered Beta

Go Unlevered Beta = Levered Beta/(1+((1-Tax Rate)*(Debt/Equity)))

Levered Beta

Go Levered Beta = Unlevered Beta*(1+((1-Tax Rate)*(Debt/Equity)))

Price Value of Basis Point

Go Price Value of Basis Point = (Price of Bond When Yield is Decreased-Price of Bond When Yield is Increased)/2

Price of Bond

Go Price of Bond = Face Value*(1+Implied Discount Rate)^Holding Period

Approximate Macaulay Duration

Go Approximate Macaulay Duration = Approximate Modified Duration*(1+Rate of Interest)

Conversion Parity Price

Go Conversion Parity Price = Value of Convertible Security/Conversion Ratio

Share Exchange Ratio

Go Exchange Ratio = Offer Price for Target's Share/Acquirer's Share Price

Earnings Yield

Go Earnings Yield = (Earnings per Share/Market Price per Share)*100

Dividend Rate

Go Dividend Rate = (Dividend per Share/Current Share Price)*100

Earnings Yield using PE Ratio

Go Earnings Yield = (1/Price-Earnings (PE) Ratio)*100

Value of Right using New Shares Formula

Value of Right = Number of New Shares*(Market Price-Issue Price of New Share)/Total Number of All Shares
V = n_ns*(MP-IP)/n_total

What is Value of Right using New Shares ?

The value of a right using new shares refers to the financial assessment of the benefit extended to existing shareholders during a rights offering to purchase additional shares at a discounted price. This value is determined by the difference between the market price of the stock and the subscription price of the rights, multiplied by the number of rights required to purchase a new share. Essentially, it reflects the potential savings or discount that existing shareholders can gain by exercising their rights to acquire new shares at a lower cost than the prevailing market price. This concept is crucial in rights offerings as it helps investors evaluate the attractiveness of participating in the offering and assesses the economic advantage or disadvantage of exercising their rights.

How to Calculate Value of Right using New Shares?

Value of Right using New Shares calculator uses Value of Right = Number of New Shares*(Market Price-Issue Price of New Share)/Total Number of All Shares to calculate the Value of Right, The Value of Right using New Shares is the market-determined worth representing the theoretical value of the privilege to purchase additional shares at a specified price during a rights offering. Value of Right is denoted by V symbol.

How to calculate Value of Right using New Shares using this online calculator? To use this online calculator for Value of Right using New Shares, enter Number of New Shares (n_ns), Market Price (MP), Issue Price of New Share (IP) & Total Number of All Shares (n_total) and hit the calculate button. Here is how the Value of Right using New Shares calculation can be explained with given input values -> 1.6 = 30*(90-82)/150.

FAQ

What is Value of Right using New Shares?

The Value of Right using New Shares is the market-determined worth representing the theoretical value of the privilege to purchase additional shares at a specified price during a rights offering and is represented as V = n_ns*(MP-IP)/n_total or Value of Right = Number of New Shares*(Market Price-Issue Price of New Share)/Total Number of All Shares. Number of New Shares refers to the quantity of additional shares issued by a company as part of a corporate action, such as a rights offering or a stock split, Market Price refers to the current value at which an asset, security, or commodity is traded in the open market based on supply and demand dynamics, Issue Price of New Share is the price at which newly issued shares are offered to investors during a primary market offering or capital raising event & Total Number of All Shares is the sum of existing shares (old shares) and newly issued shares (new shares) following a corporate action or issuance.

How to calculate Value of Right using New Shares?

The Value of Right using New Shares is the market-determined worth representing the theoretical value of the privilege to purchase additional shares at a specified price during a rights offering is calculated using Value of Right = Number of New Shares*(Market Price-Issue Price of New Share)/Total Number of All Shares. To calculate Value of Right using New Shares, you need Number of New Shares (n_ns), Market Price (MP), Issue Price of New Share (IP) & Total Number of All Shares (n_total). With our tool, you need to enter the respective value for Number of New Shares, Market Price, Issue Price of New Share & Total Number of All Shares and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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