Raptor NV has retained earnings of €500,000 and total equity of €2,000,000. It has 100,000 shares of €8 par value ordinary shares outstanding, which is currently selling for €30 per share. If Raptor declares a 10% ordinary share dividend:

a. net income will decrease by €80,000.

b. retained earnings will decrease by €80,000 and total equity will increase by €80,000.

c. retained earnings will decrease by €300,000 and total equity will increase by €300,000.

d. retained earnings will decrease by €300,000 and total share capital will increase by €300,000.