P&T Wants to Raise $2

P&T wants to raise $2.8 million through a rights offering with a subscription price of $20 a share. Currently, the company has 750,000 shares of stock outstanding at a market price of $24.50 a share. One right will be granted for each share of stock outstanding. How many rights are required to purchase one new share of stock in this offering?

A) 5.36
B) 6.02
C) 5.55
D) 6.56
E) 6.67