Mountain Products has decided to raise $6 million via a rights offering. The company will issue one right for each share of stock outstanding. The subscription price is set at $20 per share. The current market price of the stock is $25.20 and there are 1,500,000 shares currently outstanding. What is the value of one right? (I keep trying and keep getting B, which I don't think is correct.)
A) $.97
B) $.87
C) $.76
D) $.52
E) $1.04
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