Changes in Equity for ABC Corporation

ABC Corporation recently prepared its financial statements for the fiscal year ending December 31, 2023. As part of its annual reporting, it outlined the changes in equity within the 'Statement of Changes in Equity'. During the year, the company issued new shares, declared dividends, and experienced an increase in retained earnings due to profitable operations.

Assuming no other equity-related transactions occurred, which of the following correctly describes the factors that increased the total equity of ABC Corporation as reported in the Statement of Changes in Equity?