Big Box Retailing Has a Market Capitalisation of $500 Million

Big Box retailing has a market capitalisation of $500 million and 20 million shares outstanding. In order to finance its growth, the management of Big Box plans to raise further capital through a rights issue. All shareholders will be issued ten rights to purchase a new share at a price of $1.50. What will the price of a share be after the SEO, if all shareholders exercise their rights?

A) $3.64
B) $2.50
C) $2.41
D) $2.32