Mountain Products has decided to raise $8.4 million in additional funding via a rights offering. The firm will issue one right for each share of stock outstanding and it will take 4 rights to purchase one new share. The offering consists of a total of 210,000 new shares. The current market price of the stock is $45.60. What is the value of one right?

Select one:

a.

$.97

b.

$1.12

c.

$1.48

d.

$.52

e.

$1.25

Please show formula and work