Sale of the new equity

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Reference no: EM132234730

DSI 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

$3,500,000

$14,000,000

$12,252,000

$4,752,000

Reference no: EM132234730

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