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Value of Right Formula

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Value of Right per Share refers to the theoretical worth of an option or warrant, representing the difference between the current stock price and the exercise price of the option or warrant. Check FAQs
VOR=SP-RSPn
VOR - Value of Right per Share?SP - Stock Price?RSP - Right Subscription Price?n - Number of Rights to Buy a Share?

Value of Right Example

With values
With units
Only example

Here is how the Value of Right equation looks like with Values.

Here is how the Value of Right equation looks like with Units.

Here is how the Value of Right equation looks like.

0.4167Edit=38Edit-35.5Edit6Edit
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HomeIcon Home » Category Financial » Category Strategic Financial Management » fx Value of Right

Value of Right Solution

Follow our step by step solution on how to calculate Value of Right?

FIRST Step Consider the formula
VOR=SP-RSPn
Next Step Substitute values of Variables
∴ VOR=38-35.56
Next Step Prepare to Evaluate
∴ VOR=38-35.56
Next Step Evaluate
∴VOR=0.416666666666667
LAST Step Rounding Answer
∴VOR=0.4167

Value of Right Formula Elements

Variables
Value of Right per Share
Value of Right per Share refers to the theoretical worth of an option or warrant, representing the difference between the current stock price and the exercise price of the option or warrant.
Symbol: VOR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Value of Right per ShareOpen Variable
Stock Price
Stock Price refers to the current market value of a single share of a publicly traded company's stock.
Symbol: SP
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Stock PriceOpen Variable
Right Subscription Price
Right Subscription Price is the predetermined price at which existing shareholders can purchase additional shares during a rights offering.
Symbol: RSP
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Right Subscription PriceOpen Variable
Number of Rights to Buy a Share
Number of Rights to Buy a Share represents the ratio of rights issued to existing shareholders for purchasing additional shares during a rights offering.
Symbol: n
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Number of Rights to Buy a ShareOpen Variable

Other formulas in Strategic Financial Management category

​Go Earnings Yield
EY=(EPSMPS)⋅100
​Go Earnings Yield using PE Ratio
EY=(1PE)⋅100
​Go Dividend Rate
DR=(DPSCP)⋅100
​Go Share Exchange Ratio
ER=OPTSASP

How to Evaluate Value of Right?

Value of Right evaluator uses Value of Right per Share = (Stock Price-Right Subscription Price)/Number of Rights to Buy a Share to evaluate the Value of Right per Share, The Value of Right is the market-determined price representing the theoretical worth of the privilege to purchase additional shares during a rights offering. Value of Right per Share is denoted by VOR symbol.

How to evaluate Value of Right using this online evaluator? To use this online evaluator for Value of Right, enter Stock Price (SP), Right Subscription Price (RSP) & Number of Rights to Buy a Share (n) and hit the calculate button.

FAQs on Value of Right

What is the formula to find Value of Right?
The formula of Value of Right is expressed as Value of Right per Share = (Stock Price-Right Subscription Price)/Number of Rights to Buy a Share. Here is an example- 0.416667 = (38-35.5)/6.
How to calculate Value of Right?
With Stock Price (SP), Right Subscription Price (RSP) & Number of Rights to Buy a Share (n) we can find Value of Right using the formula - Value of Right per Share = (Stock Price-Right Subscription Price)/Number of Rights to Buy a Share.
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