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A share trades at Rs 400. A 1:1 rights issue is made at Rs 200. Theoretical price after the issue?

ARs 600
BRs 400
CRs 200
DRs 300
Answer & Solution
Correct answer: D. Rs 300
One share at 400 plus one new share at 200 gives total value 600 for two shares, so Rs 300 each.
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