A company is planning to raise funds by making rights issue of equity shares to finance its expansion. The existing share capital of the company is OMR 10 million consisting of equity shares of OMR 0.500 each. The market value of its share is OMR 2.50o. The company offered to its shareholders the right to buy 2 shares at OMR 1.500 each for every 5 shares held. 30% of the shareholders rejected the offer. Journalize the given entries show the necessary calculations and also the abstract of Balance sheet after such issue and calculate the theoretical ex - right price for the above scenario

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.