ABC company is increasing its equity by selling additional shares to the public

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