Anchor Steel Wants to Raise $25 Million Through a Rights

Anchor Steel wants to raise $25 million through a rights offering to renovate its current facilities. The subscription price for the offering is set at $40 a share. Currently, the company has 1.2 million
Shares of stock outstanding at a market price of $45 a share. Each shareholder will receive one
Right for each share of stock they own. How many rights will be needed to purchase one new share
Of stock in this offering?

A) 1.92 rights
B) 1.97 rights
C) 2.07 rights
D) 2.16 rights
E) 2.21 rights