Can someone please explain how they got this final answer?

Spruce Corporation had 2,200,000 shares outstanding at the beginning of the year, with a book value of $7,150,000. As well, its retained earnings at the start of the year was $900,000. On March 1, the company declared a $0.50 dividend per share. On August 1, it then issued a 10% stock dividend at a time when shares were trading at $3.75. Net income of $3 per share was reported at the end of the year. Determine the value of the company's shareholders' at the end of the year. $14,035,000 $12,035,000 $15,035,000