Answer:
$0.60
Explanation:
Calculation for the value of one right
The first step is to calculate for the cost per share.
Using this formula
Cost per share =[New share price+(New Share right*Stock price)]/ (One right +New Share right)
Let plug in the formula
Cost per share [$13 + (3 × $15.40)] / (1 + 3)
Cost per share =$13+$46.20/4
Cost per share =$59.20/4
Cost per share = $14.80
The second step is to calculate for the Value of right.
Using this formula
Value of right=New share price-Cost per share
Let plug in the formula
Value of right = $15.40 - 14.80
Value of right= $0.60
Therefore the value of one right will be $0.60
