Saturn plc wishes to raise finance through a 1 for 8 rights issue. Ordinary shares in issue are trading on the stock market at 5.00 each. The directors have decided to issue the new shares at a 20% discount to the current market price. What is the theoretical ex-rights price (to two decimal places)? a. 4.00 b. 4.11 c. 2.50 d. 4.89