TOYSrYOU Needs to Raise $5 Million in a Rights Offering

TOYSrYOU needs to raise $5 million in a rights offering. If the subscription price is $10 per share, the stock price is $12.50 per share, and there are 4 million shares outstanding, how many rights are
Required to purchase one of the new shares?

A) 0.1
B) 4.8
C) 8.0
D) 1.2
E) 2.0