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Question
Dillinger, Inc. is planning to raise additional capital for expansion by selling 500,000 common shares at $16 each. The existing stockholders' equity section of their balance sheet is shown below. What will the retained earnings figure be immediately after the sale of the new equity?| Common stock; $1 par value; authorized, 3,000,000 shares; issued and outstanding, 3,000,000 shares | $ 3,000,000 |
| Additional paid-in capital | 6,500,000 |
| Retained earnings | 4,752,000 |
| Total stockholders' equity | $14,252,000 |
a. $12,252,000
b. $14,000,000
c. $4,752,000
d. $3,500,000
Answer
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