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Assume only three shares A, B, C constitute the index with number of outstanding shares of each being 100,200 and 300 respectively. The base period
Assume only three shares A, B, C constitute the index with number of outstanding shares of each being 100,200 and 300 respectively. The base period price of the three scripts are Rs1/-, Rs 5/- and Rs10/- respectively, while their current prices are A Rs50/-, B Rs40/- and C Rs 10/-. The Index in the base period was put at 100. What shall be the impact on the Index if Company A issues right in the ratio of 1:1 to its Shareholders. Please calculate the value of Index at current prices in Post Rights issue.
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