Miller Fruit Wants to Expand Its Citrus Grove Operations

Miller Fruit wants to expand its citrus grove operations.The firm estimates that it needs $8.6 million to buy land and establish its operations.Currently,the firm has 540,000 shares of stock outstanding at a market price per share of $34.80.If the firm decides to raise the needed capital through a rights offering,one right will be issued for each share of stock.The subscription price will be set at $33 a share.How many rights will a shareholder need to purchase one new share of stock in this offering?

A) 2.07 rights
B) 2.17 rights
C) 2.22 rights
D) 2.50 rights
E) 2.67 rights