A Company Has Decided to Raise $20 Million in Capital

A company has decided to raise $20 million in capital by issuing 500,000 new shares of common stock in a rights offering. Currently there are 1.5 million shares outstanding. What will each current
Shareholder have to provide to purchase one share of this new offering?

A) $13.33 plus .33 rights
B) $13.33 plus 3 rights
C) $30.00 plus .33 rights
D) $40.00 plus .33 rights
E) $40.00 plus 3 rights