If a partnership has total equity of $300,000 and a new partner contributes $100,000 cash in exchange for $120,000 equity of the partnership, which of the following statements is correct?

Select one:

a. The business has value for which the new partner is willing to pay a premium

b. The new partner will receive a portion of capital from the existing partners

c. The new partner will add value to the business and will pay a premium to join

d. The existing partners will receive extra capital from the new partner