Bills 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 $26.40 and there are 1,500,000 shares currently outstanding. What is the value of one right?
$2.07
$2.86
$3.76
$3.52
$4.04
