1. Clara McDougal owns 500 shares in Robust Steel Inc. Robust Steel has 200,000 shares outstanding at a current market price of $40 per share. For its next batch of steel production and selling, Robust Steel needs to raise $3,500,000 and after a thorough financial analysis of its capital structure, the company finds itself ten percent short of its required target amount of $3,500,000. The executives decide that the company will meet this ten percent shortfall through a rights issue with a subscription price of $35.

Clara wishes to sell 150 of her shares after the ex-rights date. How much in total dollars will she receive by selling these shares if the value of each right is $0.15? How many dollars worth of rights will she still have after doing so?