Use the following information for the next two questions:

Ralph owns 60,000 shares of common stock in a DSD Corp. with 3 million total shares outstanding. Ralph's current ownership percentage is 2%. DSD Corp. announces a plan to sell an additional 1.2 million shares through a rights offering. The market value of the stock is $20 before the rights offering and the new shares are being offered to existing shareholders at a $5 discount. Suppose Ralph exercises his preemptive rights.

How many shares will he receive?

		60,000 shares
		24,000 shares
		18,000 shares
		84,000 shares

What is Ralph's ownership percentage in the firm after he exercises his preemptive rights?

		2.0%
		1.5%
		2.5%
		1.8%