Assuming That a Company Has a Policy of Paying Out

Assuming that a company has a policy of paying out a constant fraction of net income in the form of a cash dividends, calculate the addition to retained earnings given the following information: cash
Dividends = $3,000; net income = $15,000.

A) $10,000
B) $12,000
C) $14,000
D) $16,000
E) $18,000