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 .

1. 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