Answer:
$0.80
Explanation:
The computation of the value of one right is shown below:
But before that we need to find out the value per share that excluded from right which is
Value per share excluding right
= (Offered price + number of rights × current market price) ÷ (1 + number of rights)
= (16 + 4 × 20) ÷ (1 + 4)
= 19.20
Now the Value of one right is
= Current market price - Value per share excluding right
= $20 - $19.20
= $0.80
