You Decide to Raise $2 Million in Additional Funding Via

You decide to raise $2 million in additional funding via a rights offering. Every shareholder will receive one right for every share of stock they own. The offering consists of a total of 250,000 new
Shares. The current market price of your stock is $10. Currently, there are 1 million shares
Outstanding. What is the value of one right?

A) $.25
B) $.40
C) $.75
D) $1.20
E) $1.50