Value of Right Calculator

✖Stock Price refers to the current market value of a single share of a publicly traded company's stock.ⓘ Stock Price [SP]			+10% -10%
✖Right Subscription Price is the predetermined price at which existing shareholders can purchase additional shares during a rights offering.ⓘ Right Subscription Price [RSP]			+10% -10%
✖Number of Rights to Buy a Share represents the ratio of rights issued to existing shareholders for purchasing additional shares during a rights offering.ⓘ Number of Rights to Buy a Share [n]			+10% -10%

✖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.ⓘ Value of Right [VOR]

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Formula

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Value of Right

Formula

`"VOR" = ("SP"-"RSP")/"n"`

Example

`"0.416667"=("38"-"35.5")/"6"`

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Value of Right Solution

STEP 0: Pre-Calculation Summary

Formula Used

Value of Right per Share = (Stock Price-Right Subscription Price)/Number of Rights to Buy a Share
VOR = (SP-RSP)/n
This formula uses 4 Variables

Variables Used

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.
Stock Price - Stock Price refers to the current market value of a single share of a publicly traded company's stock.
Right Subscription Price - Right Subscription Price is the predetermined price at which existing shareholders can purchase additional shares during a rights offering.
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.

STEP 1: Convert Input(s) to Base Unit

Stock Price: 38 --> No Conversion Required
Right Subscription Price: 35.5 --> No Conversion Required
Number of Rights to Buy a Share: 6 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

VOR = (SP-RSP)/n --> (38-35.5)/6

Evaluating ... ...

VOR = 0.416666666666667

STEP 3: Convert Result to Output's Unit

0.416666666666667 --> No Conversion Required

FINAL ANSWER

0.416666666666667 ≈ 0.416667 <-- Value of Right per Share

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

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

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Nayana Phulphagar

Institute of Chartered and Financial Analysts of India National college (ICFAI National College), HUBLI

Nayana Phulphagar has verified this Calculator and 1500+ more calculators!

< 24 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))

Cost of Equity including Flotation Costs

Go Cost of Equity with flotation costs = ((Dividend in Next Period/(Current Share Price*(1-(Flotation Costs Percentage*0.01))))+(Dividend Growth Rate*0.01))*100

Approximate Modified Duration

Go Approximate Modified Duration = ((Price of Bond When Yield is Decreased)-(Price of Bond When Yield is Increased))/(2*Change in Yield*Initial Price of Bond)

Effective Duration

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

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)

Periodicity of Annual Rate

Go Periodicity of Annual Rate = Number of Days in a Year/Number of Days to Maturity

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

Money Duration

Go Money Duration = Annual Modified Duration*Price Value at Full Rate

Earnings Yield

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

Dividend Yield

Go Dividend Yield = (Dividend 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 Formula

Value of Right per Share = (Stock Price-Right Subscription Price)/Number of Rights to Buy a Share
VOR = (SP-RSP)/n

What is Value of Right ?

The value of a right, often encountered in financial contexts like rights offerings or corporate actions, represents the theoretical worth of the privilege granted to existing shareholders to purchase additional shares of stock at a specific price within a defined period. This value is determined by market forces and can fluctuate based on factors such as the current stock price, the exercise price of the rights, prevailing interest rates, market sentiment, and the duration until the rights expire. Typically, the value of a right is calculated as the difference between the market price of the stock and the subscription price of the rights. Investors and analysts closely monitor the value of rights as it influences the decision-making process regarding participating in rights offerings, trading rights in the secondary market, or assessing the overall attractiveness of the offering.

How to Calculate Value of Right?

Value of Right calculator uses Value of Right per Share = (Stock Price-Right Subscription Price)/Number of Rights to Buy a Share to calculate 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 calculate Value of Right using this online calculator? To use this online calculator 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. Here is how the Value of Right calculation can be explained with given input values -> 0.416667 = (38-35.5)/6.

FAQ

What is Value of Right?

The Value of Right is the market-determined price representing the theoretical worth of the privilege to purchase additional shares during a rights offering and is represented as VOR = (SP-RSP)/n or Value of Right per Share = (Stock Price-Right Subscription Price)/Number of Rights to Buy a Share. Stock Price refers to the current market value of a single share of a publicly traded company's stock, Right Subscription Price is the predetermined price at which existing shareholders can purchase additional shares during a rights offering & Number of Rights to Buy a Share represents the ratio of rights issued to existing shareholders for purchasing additional shares during a rights offering.

How to calculate Value of Right?

The Value of Right is the market-determined price representing the theoretical worth of the privilege to purchase additional shares during a rights offering is calculated using Value of Right per Share = (Stock Price-Right Subscription Price)/Number of Rights to Buy a Share. To calculate Value of Right, you need Stock Price (SP), Right Subscription Price (RSP) & Number of Rights to Buy a Share (n). With our tool, you need to enter the respective value for Stock Price, Right Subscription Price & Number of Rights to Buy a Share 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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