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Hargrave Kitchen & Bath has 6 million shares outstanding at a price of $ 3 3 . 2 5 per share. The company has decided

Hargrave Kitchen & Bath has 6 million shares outstanding at a price of $33.25 per share. The company has decided to
raise capital through a rights issue. All shareholders will be issued one right per share. For every five rights held by
the stockholder, they can buy one share at a price of $33.25. How much money will this raise, if all shareholders
exercise their rights? Round to one decimal place.
A. $30.0 million
B. $33.3 million
C. $39.9 million
D. $234.4 million
E. $199.5 million
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