Big Box Retailing Has a Market Capitalization of $500 Million

Big Box retailing has a market capitalization of $500 million and 20 million shares outstanding.In order to finance its growth,the management of Big Box plans to raise further capital through a rights issue.All shareholders will be issued ten rights to purchase a new share at a price of $1.50.What will the price of a share be after the SEO,if all shareholders exercise their rights?

A) $1.50
B) $2.32
C) $2.41
D) $2.50
E) $3.64