You Currently Own 10 Percent of the 2 Million Outstanding

You currently own 10 percent of the 2 million outstanding shares of the Perry Co. The company has just announced a rights offering with a subscription price of $30. Every shareholder will receive one
Right for every share of stock they own. This offering will provided $15 million of new financing for
The firm, ignoring all issue costs. What will be your new ownership position if you opt to sell your
Rights rather than exercise them?

A) 2.5 percent
B) 3.5 percent
C) 5.0 percent
D) 8.0 percent
E) 10.0 percent