The market value of a share of a company is Rs 140. The company has issued rights shares. The existing shareholders are allowed to subscribe for one additional share at a price of Rs 120 for each 9...

The market value of a share of a company is Rs 140. The company has issued rights shares. The existing shareholders are allowed to subscribe for one additional share at a price of Rs 120 for each 9 rights held. Compute the theoretical value of the following:

(i) A right when shares are selling “rights-on”

(ii) Value of one share if it goes “ex-rights”

(iii) A right when the share sells “ex-rights” and the actual market price moves to Rs 138.