Stephen Owns 5,000 Shares of ABNC Stock

Stephen owns 5,000 shares of ABNC stock. Currently, there are 1.2 million shares outstanding. The company has just announced a rights offering whereby 300,000 shares are being offered for sale
At a subscription price of $24 a share. The current stock price is $27 a share. Assume that Stephen
Sells his rights and that all rights are exercised. What will his ownership percentage be in ABNC
After the rights are exercised?

A) .17 percent
B) .22 percent
C) .33 percent
D) .38 percent
E) .42 percent