Ben and Jennie's Wants to Expand Their Operations into the Cookie

Ben and Jennie's wants to expand their operations into the cookie business. It needs $20 million to build a bakery and establish a distribution system. Currently, the firm has 1,300,000 shares of stock
Outstanding. The market price of the stock is $34 a share. Ben and Jennie's decides to raise the
Needed capital through a rights offering wherein every stockholder will receive one right for every
Share of stock they own. The subscription price will be $28. How many rights will be needed to
Purchase one new share of stock in this offering?

A) 1.21 rights
B) 1.27 rights
C) 1.54 rights
D) 1.82 rights
E) 2.21 rights