Suppose you own 500,000 common shares of a company with a total of 40 million shares outstanding. The firm announces a plan to sell an additional 5 million shares through a rights offering (sale of shares to its shareholders). The market value of the shares is $32.5 before the rights offering and the new shares are being offered to existing shareholders at a discount of $2.50. If you exercise your preemptive rights, how many of the new shares can you buy?

100,000

62,500

32,500

45,000

50,000