A company wishes to raise 30,00,000 through a right offering. It has 2,40,000 shares outstanding, which have beenmost recently trading between 106 and 116 per share. On the advice of the SBI caps, the company has set the subscription price for the rights at 100 per share. What will be the theoretical value of a right if the current market price is 109 with rights and the subscription price is 100?
A. 71.125. C. 1.000
B. 1.375 D.1.750