Winning Sportswear Wants to Raise $3 Million Through a Rights

Winning Sportswear wants to raise $3 million through a rights offering to renovate their current facilities. The subscription price for the offering is set at $20 a share. Currently, the company has
120,000 shares of stock outstanding at a market price of $25 a share. Each shareholder will receive
One right for each share of stock they own. How many rights will be needed to purchase one new
Share of stock in this offering?

A) 0.8 rights
B) 1.0 rights
C) 1.2 rights
D) 1.4 rights
E) 1.6 rights