Sanguillen Corp. showed retained earnings of $500,000 on its balance sheet for 2006. In 2007, the company's earnings per share (EPS) were $1.00 and its dividends paid per share (DPS) were $0.50. The company has 200,000 shares of stock outstanding. What will be the level of retained earnings on the company's 2007 balance sheet? Balance of Retained earnings, 12/31/06 700,000 Net Income, 2008 ? Dividends paid Balance of retained earnings, 12/31/07 Select one: a $700,000 b. $600,000 C. $500,000 d. $800,000 X e. $900,000