A company recently announced renounceable offers that give eligible shareholders the right to purchase the shares of the company at an issue price of $10.00 per share for every five shares they hold. If the cum-right shares are priced at $12.00, the value of right is given as:

Select one:

a.

$1.667

b.

$2.00

c.

$1.00

d.

$2.50