Nov 19, 2021 ... Reference share price. Subscription price. Theoretical ex-rights price. (TERP). Theoretical value per right. Value per share. Nominal discount.What is the theoretical ex rights price (TERP) per share and the rights issue price per share? The correct answers are: TERP $6.60 Rights issue price $5.00 TERP is the market price before the rights issue less the value of a right per existing share = $7.00 – $0.40 = $6.60. The issue price can be calculated from the TERP by subtracting the ...But the 325m new shares in its 1-for-5 rights issue are being offered at just 185p, which is a 28 per cent discount to the theoretical ex-rights price. So this is not an M&S rights issue. It is ...Multiply the shares' portion by the share price before the rights issue. For instance, if the shares sell at a price of £1.30: 0.8 --- £1.30 = £1.0.The current market price of a stock is $3.00.The rights issue is one-for-ten,priced at $2.80.Calculate the theoretical ex-rights price. A) $1.96Theoretical Ex-rights Price (TERP) Definition of the Theoretical Ex-rights Price (TERP). The Theoretical Ex-rights Price (TERP) is a financial concept used... Purpose and Significance of TERP in …Theoretical ex-rights price (TERP) is a situation where the stock and the right attached to the stock is separated. TERP is a calculated price for a company’s stock shares after issuing new rights-shares, assuming that all these newly issued shares are taken up by the existing shareholders.Jun 23, 2022 · Il TERP (Theoretical ex right price) o prezzo teorico ex diritto di un titolo è il prezzo teorico di un’azione dopo lo stacco del diritto di opzione relativo ad un aumento di capitale. Il medesimo concetto è applicato anche ai diritti di opzione per la sottoscrizione di obbligazioni convertibili. Per capire il fondamentale ruolo del TERP ... What is a theoretical ex-rights price? It denotes the market price that a single share of a company will theoretically have following a new rights issue. The theoretical ex-rights price (Terp) will usually be lower than the value of the share prior to the rights issue because the new shares are normally issued at a discount. FORMULA AND DERIVATION Before one can learn the formula to find the theoretical ex-rights price, it is necessary to know the concept ‘market capitalisation’. \ [Market\ Capitalisation=Price\ per\ share\times Number\ of\ shares\ outstanding\ \] It is the total market value of all shares outstanding of a company.Theoretical Ex-Rights Price may differ slightly from the actual market price of the stocks prevailing after a rights issue due to, for example, varying perceptions of market participants concerning the rights issue and stock market imperfections.[1] Such theoretical ex-rights price is the theoretical market price of each share assuming the completion of the rights issue, and is calculated based on the last transacted price of the shares on the Main Board of the SGX-ST of S$2.75 on the last trading day, and the number of shares following the completion of the rights issue.Theoretical Ex-Rights Price, also commonly known as TERP, is a calculation used to determine the expected stock value after a rights offering. This offering provides existing shareholders with the opportunity to purchase additional shares of the company’s stock at a discounted price. Determining the TERP is crucial for investors as …Calculation of TERP (Theoretical ex- rights price) Calculation of TERP (Theoretical ex- rights price) The current shareholders will, after the rights issue, hold: 1 @ $4 = $4 2 @ $6 =$12. So, they now own a total of 3 for a total of $16. So the TERP is $16/3 = $5.33 股票除权（Ex-rights）是在股票发行公司给股东配发股票股利（即权值或取得增发股票的权利）期间，该股票的上市交易价格一般要除去发行公司配发给股东的那部分权值。同股票除息一样，股票除权也是为了保证股票交易的公平性。股票除权通常分为无偿配股（即盈余转增资或公积金增资）、有偿 ...Theoretical Ex-Rights Price or TERP is the price of the shares immediately after the rights issue. A rights issue is the offering of shares to existing shareholders. As …股票除权（Ex-rights）是在股票发行公司给股东配发股票股利（即权值或取得增发股票的权利）期间，该股票的上市交易价格一般要除去发行公司配发给股东的那部分权值。同股票除息一样，股票除权也是为了保证股票交易的公平性。股票除权通常分为无偿配股（即盈余转增资或公积金增资）、有偿 ...4 new shares at 153p. £6.12. Value of 13 shares. £28.35. Theoretical ex rights price. £28.35/13 = 218p. To work out the TERP you take the second number in the rights issue (this is a 4 for 9 so we will use 9) and multiply that by the current share price. This gives you a value of an existing investment of 9 shares. The TERP Discount. The Theoretical Ex Rights Price (“TERP”). Theoretical price at which the shares should trade, once the rights are detached. TERP = (Current ...On 1 June 2009 the company makes a rights issue of 1 share for every 4 held at $0.6 per share. Its profits were $500,000 in 2019 and $440,000 in 2018. The year-end is 30 November. Required: Calculate (a) the theoretical ex-rights price; (b) the bonus issue factor; (c) the basic earnings per share for 2018; (d) the basic earnings per share …Theoretical Ex-Rights Price (TERP) The theoretical ex-rights price (also known as TERP) is the price that the shares should be, in theory, after the rights issue. It is a weighted average price of the shares before the rights issue and the new shares in the rights issue. To work this out: take the number of shares needed to get the rights issue ...What is the theoretical ex rights price (TERP) per share and the rights issue price per share? The correct answers are: TERP $6.60 Rights issue price $5.00 TERP is the market price before the rights issue less the value of a right per existing share = $7.00 – $0.40 = $6.60. The issue price can be calculated from the TERP by subtracting the ...Apr 7, 2022 · Usually, the share price will be changed after conducting the right issue. The new share price after the right issue is known as the theoretical ex-rights price (also known as ex-right price or TERP). It is calculated by sum the market value of existing shares and proceeds of right issues divided by the total number of shares after the right issue. Theoretical Value is a useful tool for existing shareholders to decide whether they should exercise their right and participate in the rights issue or sell the right in the open market. If the theoretical value is higher than the market price, it means the issue is potentially undervalued and may be a good investment opportunity.Example. 2 for 5 offered at £4 when the market value is £10. So we are being offered 2 @ £4 = £8. For every 5 which cost us £10 each = £50. So we now have 7 at a cost of £58 = 8.29. This is what we call the TERP (theoretical ex-rights price). The bonus fraction is the current MV / TERP = 10 / 8.29. Notes Video Quiz.A company with a cum-rights (i.e. before the rights issue) share price of 318 pence announces a 2 for 9 rights issue at 252 pence.Calculate the theoretical ex-rights price (TERP) and, assuming an investor currewntly owns 9,450 shares in the company before the rights issue is announced, calculate how many of their rights would they have to sell in …Sep 12, 2023 ... ... Rights Shares, the theoretical ex-rights price is approximately HK$0.2067 per Share (instead of HK$0.2014 per Share as set out in the.Definition: A theoretical ex-rights price (TERP) is the market price that a stock will theoretically have following a new rights issue. Companies may use a new rights issuance to offer more shares to shareholders, usually at a discounted price. Stock prices are affected by new rights issuance because it increases the number of shares outstanding. This video is about: Theoretial Ex-Right Price and Value of a Right Share . Subscribe to our YouTube channel to watch more Accounting lectures. Practice test...Aug 30, 2017 ... CIMA F3 Yield adjusted theoretical ex-rights price Free lectures for the CIMA F3 Financial Strategy Exams To benefit from this lecture, ...Yield adjusted ex-rights price. So normally we presume that when we do a rights issue, the money from it generates the same rate of return as existing funds.. But, if the new money raised is likely to earn a different return from to the current return, the yield-adjusted theoretical ex-rights price should be calculated. In this report, we present the sensitivity of Keppel Corp (SGX:BN4) ’s theoretical ex-rights price (TERP) post dividend in specie (DIS) based on Sembcorp Marine Share Price, ranging from the latest closing price of S$0.136 to a bear case of S$0.07. This brings our Keppel Corp 's TERP range to S$6.95-7.07. Our calculation of …In a regulatory filing on Monday, the company said it would issue 725m shares in a 4-for-11 rights issue at an offer price of Sfr107, a discount of 37.4% to the theoretical ex-rights price.(3) renounce part of his rights and take up the remainder (4) do nothing. Further calculations The theoretical ex-rights price (TERP) of a share . The new share price after the issue is known as the theoretical ex-rights price and is calculated by finding the weighted average of the old price and the rights price, weighted by the number of shares. Buying stock before the ex-dividend date is easy as long as basic rules are followed. The day count is important so that the investor clearly owns the stock on the ex-dividend date...Le Theoretical ex-rights price, TERP, correspond au cours de bourse de l'action une fois détaché le droits préférentiels de souscription lors d'une augmentation de capital Par exemple, le cours est de 100, on fait une augmentation de capital à 80 avec droit préférentiel de souscription à hauteur d'une action nouvelle pour trois actions anciennes …The Theoretical Ex-Rights Price (“TERP”) is the theoretical price at which St Barbara shares should trade after the ex-date for the Entitlement Offer. The conversion of hybrid capital instruments into equity shall be conducted at 5 percent or more below TERP ( Theoretical Ex-Rights Price ) at the time of the conversion. a) It has been suggested that the additional finance be raised by means of a 1 for 4 rights issue. The issue price will be at a 20 percent discount to the current market price of Euro 2.75 and issue costs are expected to be Euro 50,000. Calculate and explain the following: (i) the theoretical ex-rights price per share; (ii) the net cash raised;Estimating the theoretical ex-rights share price. Once the rights offering has wrapped up, the price of your stock is likely to change some -- at least, at first. If a lot of stocks were purchased ...Theoretical ex-rights price (TERP) is the estimated price of a share of a company following a rights issue. It is usually estimated as the weighted average price per share of existing and the new shares.Dec 26, 2023 · Somer Anderson Fact checked by Vikki Velasquez What Is Ex-Rights? The term ex-rights refers to shares of stock that are trading but no longer have rights attached to them. Rights, in this... According to the University of Southern California’s Library Guide, a theoretical framework is the research from previous literature that defines a study’s core theory and concepts...Theoretical Ex-Rights Price (TERP) The theoretical ex-rights price (also known as TERP) is the price that the shares should be, in theory, after the rights issue. It is a weighted average price of the shares before the rights issue and the new shares in the rights issue. To work this out: take the number of shares needed to get the rights issue ...A theoretical ex-rights price (TERP) is the market price that a stock will theoretically have following a new rights issue. Companies may use a new rights issuance to offer more shares to shareholders, usually at a discounted price. Stock prices are affected by new rights issuance because it increases … See moreThe Theoretical Ex-Rights Price (“TERP”) is the theoretical price at which St Barbara shares should trade after the ex-date for the Entitlement Offer. The conversion of hybrid capital instruments into equity shall be conducted at 5 percent or more below TERP ( Theoretical Ex-Rights Price ) at the time of the conversion. Aug 2, 2021 · What Is a Theoretical Ex-Rights Price – TERP? A hypothetical ex-rights value (TERP) is the market value that a stock will hypothetically have following another rights issue. Organizations may utilize another rights issuance to offer more offers to investors, as a rule at a limited cost. Stock costs are influenced by new rights issuance since ... Jun 29, 2021 · A theoretical ex-rights price is the estimation of the value of new stock issued through a rights offering. Typically, rights offerings are only available for current shareholders and only offered for a short time, usually 30 days. Rights offerings give shareholders the option to buy a proportional number of shares at a discounted, pre ... Sembcorp Marine share price ambushed by cash call. The $1.5 billion rights issue is subjected to approval in the extraordinary general meeting (EGM), which is expected to be held in August 2021. Thus, it is not a done deal yet. In the event that the rights issue is approved, the theoretical ex rights price will be $0.124.(b) 10.8% to the theoretical ex-rights price(1) of S$0.325 per Share. Note: (1) The theoretical ex-rights trading price is the theoretical market price of each Share assuming the completion of the Rights cum Warrants Issue, and is computed based on the VWAP of S$0.325 per Share for Shares traded on the Mainboard of theSolution for (a) Calculate the theoretical ex-rights price per share of Squid Inc. following the rights issue.Theoretical ex rights price $47.5m / 6.25m = $7.60 Current price = $6.00 Value of a right $1.60 Value of right per share $1.60 / 4 = $0.40. Examiner’s report – F9 September 2016 3 The incorrect responses are as follows: A A significant number of candidates incorrectly opted for option A $1.60, where the final step toJun 23, 2022 · Il TERP (Theoretical ex right price) o prezzo teorico ex diritto di un titolo è il prezzo teorico di un’azione dopo lo stacco del diritto di opzione relativo ad un aumento di capitale. Il medesimo concetto è applicato anche ai diritti di opzione per la sottoscrizione di obbligazioni convertibili. Per capire il fondamentale ruolo del TERP ... But the theoretical share price that will result after the rights issue is complete—which is the ex-rights share price—is possible to ... At the adjusted ex-rights price of $4.92 less $3, ...take-up of the Entitlement Offer. The theoretical ex-rights price is a theoretical calculation only and the actual price at which shares trade immediately after ...Theoretical ex-right price is calculated when there is : A. Bonus issue: B. Right issue: C. Stock split: D. All of these: Answer» B. Right issue View all MCQs in: Financial Reporting Discussion. Comment. Related Questions. Theoretical ex-rights price (‘TERP’) is calculated when there is a: ...The Theoretical Ex-Rights Price (“TERP”) is the theoretical price at which St Barbara shares should trade after the ex-date for the Entitlement Offer. The conversion of hybrid capital instruments into equity shall be conducted at 5 percent or more below TERP ( Theoretical Ex-Rights Price ) at the time of the conversion.All lessons are now available on Viexla website. ----- Search "Viexla" on Google ----- Watch all the Videos and HandoutsHi Expert Learners!!!Thanks for wat...A theoretical ex-rights price (TERP) is the market price that a stock will theoretically have following a new rights issue. The theoretical ex-rights price (TERP) is often lower than the stock's price before the offering because rights offerings are …Two ex-Trump officials have been indicted for money laundering, among other charges. Here's what that means and how the two allegedly carried out the scheme, according to the unsea...The theoretical price is based on the assumption that the total value of the company's equity will increase by exactly the amount of cash subscribed by the shareholders, and neither more nor less. The theoretical ex-rights price will generally be lower than the market price of the company's shares before the rights issue, because the rights ...2011 $6,400,000. 2012 $7,200,000. Calculation of Earning Per Share for 2011 and 2012 for presentation in financial statements for the year ended 31st December 2012 would be as follows: Step 1: Calculate the Theoretical Ex-Rights Price. $. Value of ABC PLC prior to rights issue. (3,000,000 x $2) $6,000,000.Bài 3: Alpha is a listed company with a share price of $2 per share. It announces a 1-for-4 rights issue at $1.6 per share. What is the theoretical ex-rights price? $2.40; $1.80; $1.68; $1.92; Phân tích đề: Alpha là một công ty niêm yết có giá cổ phiếu là $2. None of the other statements is correct The theoretical value of right to buy a new share typically ignores the value of the option associated with the right The theoretical ex-right price is only ever related to the subscription price. The observed ex-rights price will be the same as the theoretical ex-right price.The Theoretical Ex-Rights Price (TERP) is a crucial concept in business and finance as it offers a theoretical fair value of a company’s stocks after a rights issue, which can help investors make more informed decisions. It’s calculated by taking into account the market price of the stock, the price of the rights issue, as well as the ratio ...Bài 3: Alpha is a listed company with a share price of $2 per share. It announces a 1-for-4 rights issue at $1.6 per share. What is the theoretical ex-rights price? $2.40; $1.80; $1.68; $1.92; Phân tích đề: Alpha là một …35.7% discount to TERP (Theoretical Ex-rights Price) based on last close of S$0.191; 58.1% discount to last close of S$0.191 on 23 June 2021; Proceeds from Rights Issue to be utilised for working capital and general corporate purposes, including debt servicing. Certainty of raising the full S$1.5 billion from the Rights IssueCIMA F3 Yield adjusted theoretical ex-rights priceFree lectures for the CIMA F3 Financial Strategy ExamsTo benefit from this lecture, visit opentuition.com t...2011 $6,400,000. 2012 $7,200,000. Calculation of Earning Per Share for 2011 and 2012 for presentation in financial statements for the year ended 31st December 2012 would be as follows: Step 1: Calculate the Theoretical Ex-Rights Price. $. Value of ABC PLC prior to rights issue. (3,000,000 x $2) $6,000,000. Apr 11, 2022 · Cum rights refer to a shareholder of record that qualifies for a rights offering declared by a company. Cum rights allow existing shareholders to buy new shares, typically at a price lower than ... In a regulatory filing on Monday, the company said it would issue 725m shares in a 4-for-11 rights issue at an offer price of Sfr107, a discount of 37.4% to the theoretical ex-rights price.May 29, 2019 · Theoretical Ex-Rights Price may be calculated as follows: Step 1: Calculate market value of 5Paisa.com prior to the rights issue. Market Value before rights issue. (Rs.369.6 x 1,27,39,022shares) 4,70,83,42,531.2. Step 2: Calculate cash proceeds raised from the rights issue. Cash raised from rights issue. Theoretical ex-rights price (TERP) is an important concept in stock analysis that refers to the theoretical ex-rights price per share after the issuance of rights or options. This calculation is based on a company’s current stock price, the amount of shares offered, and the rights’ strike price. ...股票除权（Ex-rights）是在股票发行公司给股东配发股票股利（即权值或取得增发股票的权利）期间，该股票的上市交易价格一般要除去发行公司配发给股东的那部分权值。同股票除息一样，股票除权也是为了保证股票交易的公平性。股票除权通常分为无偿配股（即盈余转增资或公积金增资）、有偿 ...XYZ Ltd has earnings after tax of $946000 for the year ended 30 June 2021. At the beginning of the period, XYZ had 257000 fully paid ordinary shares on issue. On 30 December 2020, the company made a 1-for-4 rights issue at a subscription price of $0.57 for each share. The last cumulative rights share price immediately prior to the rights …Dec 13, 2022 · You must first calculate the theoretical yield of your product using the balanced equation. The crude yield is divided by the theoretical yield and multiplied by 100. Why is it impossible to calculate an exact theoretical yield of soap? The current market price of a stock is $3.00.The rights issue is one-for-ten,priced at $2.80.Calculate the theoretical ex-rights price. A) $1.96What is the theoretical ex rights price (TERP) per share and the rights issue price per share? The correct answers are: TERP $6.60 Rights issue price $5.00 TERP is the market price before the rights issue less the value of a right per existing share = $7.00 – $0.40 = $6.60. The issue price can be calculated from the TERP by subtracting the ...To estimate the theoretical ex-rights price of a stock, one can add the current market value of all shares existing before the rights issue to the funds raised from the …Nov 7, 2023 ... The subscription price is SEK 2.65 per share, corresponding to a discount of approximately 46.6 percent, compared to the theoretical ex-rights ...A theoretical ex-rights price (TERP) is the market price that a stock will theoretically have following a new rights issue. Companies may use a new rights issuance to offer more shares to shareholders, usually at a discounted price. Stock prices are affected by new rights issuance because it increases … See moreLe Theoretical ex-rights price, TERP, correspond au cours de bourse de l'action une fois détaché le droits préférentiels de souscription lors d'une augmentation de capital Par exemple, le cours est de 100, on fait une augmentation de capital à 80 avec droit préférentiel de souscription à hauteur d'une action nouvelle pour trois actions anciennes …The rights issue price would be at a 20% discount to the current share price. Issue costs of $200,000 would have to be met from the cash raised, whether the new finance was equity or debt. ... Calculate the theoretical ex rights price per share for the proposed rights issue. (5 marks) Reveal answer Formulae & tables. Marking guide Examiners report.What is the theoretical ex-rights price and the value of a right per old shares? What are the main advantages and disadvantages of raising finance through selling (a) ordinary shares, and (b) preference shares? …Jan 19, 2023 ... The rights offer issue price of R1.30 represents a discount of approximately 30% to the theoretical ex-rights price (“TERP”) which is in ...of the 50m options has an Intrinsic Value1 of $0.40, being the theoretical ex-rights price less the revised exercise price of the option, and is instantly worth $20m in total. Before the rights issue, the options did not have any Intrinsic Value as the market price was the same as the exercise price. Therefore the adjustment is not correct. The current market price of a stock is $3.00.The rights issue is one-for-ten,priced at $2.80.Calculate the theoretical ex-rights price. A) $1.96All lessons are now available on Viexla website. ----- Search "Viexla" on Google ----- Watch all the Videos and HandoutsHi Expert Learners!!!Thanks for wat...But the theoretical share price that will result after the rights issue is complete—which is the ex-rights share price—is possible to ... At the adjusted ex-rights price of $4.92 less $3, ...May 12, 2019 · Learn what theoretical ex-rights price (TERP) is, how to calculate it using a simple formula, and see an example of a 3 for 5 rights issue. TERP is the estimated price of a share of a company after a rights issue, which is usually lower than the share price before the rights issue. We would like to show you a description here but the site won’t allow us.
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To calculate theoretical mass, or theoretical yield, one must balance the reaction, establish the number of moles, find the reagent that is limiting and then calculate the moles an...The American Civil Liberties Union (ACLU) is a non-profit organization dedicated to defending and protecting the civil liberties of all Americans. The ACLU website is a great resou...4 new shares at 153p. £6.12. Value of 13 shares. £28.35. Theoretical ex rights price. £28.35/13 = 218p. To work out the TERP you take the second number in the rights issue (this is a 4 for 9 so we will use 9) and multiply that by the current share price. This gives you a value of an existing investment of 9 shares. Yield adjusted ex-rights price. So normally we presume that when we do a rights issue, the money from it generates the same rate of return as existing funds.. But, if the new money raised is likely to earn a different return from to the current return, the yield-adjusted theoretical ex-rights price should be calculated. Mar 31, 2023 · Example of Theoretical Ex-rights Price For example, let’s say company ABC is offering 1,000 shares at a discounted price of $5 per share. The market price for the stock before the rights issue was $10 per share and there are 10,000 existing shares in circulation. The share price when announcing the rights was $31.4 and the firm’s current ordinary share price is $32.40 and the 1-for-9 pro-rata issue has an offer price of $30.6. What is the theoretical ex-rights share price of the firm? Give your final answer as dollars rounded to the nearest cent.According to the University of Southern California’s Library Guide, a theoretical framework is the research from previous literature that defines a study’s core theory and concepts...The actual ex-rights price may be different from the theoretical ex-rights price because of market expectations and because of the expected yield on new funds. 2. It has been suggested that share splits increase liquidity, but research has not supported this view. It has also been suggested that share splits increase shareholder wealth, but the ...The current ex-dividend market price of Brand plc is 1.90. Three different rights issue prices have been suggested by the finance director: 1.80, 1.60 and 1.40. Determine the number of shares to be issued, the theoretical ex-rights price, the expected earnings per share and the form of the issue for each rights issue price. Comment on …1. how to calculate theoritical ex rights price of the right issue using 1/n+1×((nx cum rights price) + issue price) where N= number of shares required to buy one new share. note:please use your own figures . 2. how to calculate NPV for new machine showing all calculations. note:please use your own figuresTranslations in context of "ex-right" in English-Spanish from Reverso Context: While measure B3 did not provide for a significant discount to the share price as adjusted for the dilution effect, it was, in fact, impossible to achieve …17 percent discount to theoretical ex-rights price, or TERP, based on Friday's closing share price of EUR1. Bank of Ireland rights issue at 64% discount to closing price 75 pence closing price and a 36 per cent discount to the theoretical ex-rights price .The Theoretical Ex-Rights Price (TERP) is a financial term that refers to a calculation of the theoretical price of a share of stock after a company has issued new shares. This helps to estimate the effect of a new issuance on a company’s stock price. Free ACCA & CIMA online courses from OpenTuition. Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams. ACCA. CIMA. FIA.This is the market price of the shares immediately before it becomes “ex-rights” or last day when the shares are traded together with the rights i.e. “cum-rights” 2. Theoretical ex-rights fair value per share. This number is calculated using the following formula: Let us now understand this complex formula with the help of an easy ...Step 6. Add together the prices from Steps 3 and 5: $1.68 + $0.396 = $2.08. This is the theoretical ex-rights price. During a rights issue, a company raises capital by offering new shares of its stock to its shareholders. In theory, the shareholders will buy all the new offerings, and this trade will change the price of the company's shares. A firm plans to undertake a 1-for-4 rights issue. If the firm’s current share price is $2.00 and the subscription price for the issue is set at $1.00, what is the theoretical ex-rights price for the firm’s share?The issue price will be at a 20 percent discount to the current market price of Euro 2.75 and issue costs are expected to be Euro 50,000. Calculate and explain the following: (i) the theoretical ex-rights price per share; (ii) the net cash raised; (iii) the value of the rights. b) Is the underwriting of rights issues an unnecessary expense?(3) renounce part of his rights and take up the remainder (4) do nothing. Further calculations The theoretical ex-rights price (TERP) of a share . The new share price after the issue is known as the theoretical ex-rights price and is calculated by finding the weighted average of the old price and the rights price, weighted by the number of shares. .