To Finance the Construction of a New Plant,Pietersen Corporation Must

To finance the construction of a new plant,Pietersen Corporation must raise an additional $10,000,000 of equity capital through the sale of common stock.The firm currently has an EPS of $5.40 and a P/E ratio of 10,with 1,200,000 shares outstanding.If the firm wants its ex-rights price to be $50,what subscription price must it set on the new shares?

A) $29.55
B) $33.78
C) $39.28
D) $41.80
E) $50.00