YOLO Inc. needs to raise $5 million in a rights offering. The company plans to issue new shares at $10 per share, which is $2.5 lower than the current market price, and there are 2.5 million shares outstanding. What price should you pay if you plan to buy when the market just opens on the ex-rights day? A) $7.50 B) $11.46 *C) $12.08 D) $12.36 E) $12.50

Please, explain.