You decide to raise $8 million in additional funding via a rights offering. One right is being granted for every share of stock currently outstanding. The offering consists of a total of 500,000 new shares. Currently, there are 2.5 million shares outstanding at a market price of $31 per share. What is the value of one right?

Select one:

a. $1.24

b. $0.71

c. $1.52

d. $3.00

e. $2.50