NLT has 2 million shares outstanding and the current share price is $12 per share. The company announced to launch a rights offering where each share is given one right and shareholders can purchase one share at $10/share for every 4 rights. Assuming all shareholders will participate, the value of each right is closest to:

Select one:

a. $5

b. $0.4

c. $3

d. $12

e. $7