Jennifer Owns 12,000 Shares of Calico Clothing

Jennifer owns 12,000 shares of Calico Clothing. Currently, there are 1.6 million shares of stock outstanding. The company has just announced a rights offering whereby 200,000 shares are being offered for sale at a subscription price of $14 a share. The current stock price is $16 a share. Assume that Jennifer sells her rights and that all rights are exercised. What percentage of the firm will Jennifer own after the rights offering?

A) 0.67 percent
B) 0.75 percent
C) 0.86 percent
D) 0.93 percent
E) 1.01 percent