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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
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