Luther Industries Currently Has 100 Million Shares Outstanding at a Price

Luther Industries currently has 100 million shares outstanding at a price of $25 per share. The company would like to raise money and has announced a rights issue. Every existing shareholder will be sent one right per share that he or she owns. The company plans to require twenty rights to purchase one share at a price of $20 per share. The amount of money that Luther will raise through its rights offering is closest to

A) $125 million.
B) $400 million.
C) $500 million.
D) $100 million.