Hamilton, Inc

Multiple Choice

Hamilton, Inc. is issuing a rights offering wherein every shareholder will receive one right for every share of stock they own. The new shares in this offering are priced at $30 plus 2 rights. The current market price of Hamilton, Inc. stock is $34.50 a share. What is the value of one right?

A) $1.00
B) $1.50
C) $2.25
D) $3.00
E) $4.50