Hellen Company had 100,000 shares of $5 par value common stock outstanding prior to declaring a 5% common stock dividend. The market value of the common stock on the declaration date was $14. Which of the following statements correctly describes the effect of the common stock dividend?

A. Additional paid-in capital increased $45,000.

B. Retained earnings increased $70,000.

C. Retained earnings decreased $25,000.

D. Total stockholders' equity decreased $5,000.