The Schraeder Corporation Has 20,000 Shares Outstanding at $20 Each

The Schraeder Corporation has 20,000 shares outstanding at $20 each. They expect to raise $200,000 by a rights offering with a subscription price of $25. How many rights must you turn in to get a new share?

A) 1.25
B) 1.50
C) 2.00
D) 2.50
E) Insufficient data to determine