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Miya owns 14,000 shares of Xie Clothing. Currently, there are 1.6 million shares of stock outstanding. The company has just announced a rights offering whereby

Miya owns 14,000 shares of Xie Clothing. Currently, there are 1.6 million shares of stock outstanding. The company has just announced a rights offering whereby 200,000 shares are being offered for sale at a subscription price of $14 a share. The current stock price is $16 a share. Assume that Miya sells her rights and that all rights are exercised. What percentage of the firm will Miya own after the rights offering?

A.

0.78 percent

B.

0.75 percent

C.

0.86 percent

D.

0.67 percent

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