The CBA Inc has 220,000 shares outstanding with a $5.5 par value. The shares were issued for $15.5. The stock is currently selling for $27.5. CBA has $6,000,000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 6.50%. What will be the capital in excess of par account after the stock dividend?
a. $2,200,000
b. $4,711,350
c. $2,514,600
d. $8,514,600