You Decide to Raise $8 Million in Additional Funding Via

You decide to raise $8 million in additional funding via a rights offering. One right is being granted for every share of stock currently outstanding. The offering consists of a total of 400,000 new shares. Currently, there are 2.5 million shares outstanding at a market price of $31 per share. What is the value of one right?

A) $.71
B) $1.15
C) $1.24
D) $1.37
E) $1.52