Abc company is increasing its equity by selling additional

Reference no: EM13469804

ABC company is increasing its equity by selling additional shares to the public and also by converting its retained earnings. The total amount to be raised is $1,000. Given that the size of retained earnings is $300, how much should be raised externally (by issuing new shares)?

a) $700

b) $705

c) $1,000

d) $1,005

e) $300

Reference no: EM13469804

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