Cash from rights issue equals new shares times issue price Steps:

• Existing shares = ordinary share capital ÷ par value = $34,200 ÷$1 = 34,200 shares.
• New shares issued = 34,200 ÷ 3 = 11,400 shares.
• Issue price per share = par value + premium = $1 +$1.50 = $2.50.
• Cash received = 11,400 × $2.50 =$28,500.

Why C is correct:

• Cash received equals number of new shares multiplied by full issue price (par + premium), per standard accounting for share issues.

Why the others are wrong:

• A. Assumes fewer new shares (e.g., 5,000 at $2.50).
• B. Assumes 9,000 new shares at $2.50, ignoring correct existing shares.
• D. Assumes more new shares (e.g., 21,000 at $2.50).

Final answer: C