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Value of right = Market price – average value of each share including the rights share To calculate average value of share including rights Value of 2 existing shares = 2*220 = Rs.440 Value of each rights share = 1*160 = Rs.160 Value of 3 shares = 600 Average value of each share (including rights) = 600/3 = Rs.200 Thus, value of right = market value – average value = 220-200 = Rs.20
What is the larger number?
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