Below Is the Common Equity Section (In Millions)of Timeless Technology's

question 52

Multiple Choice

Below is the common equity section (in millions) of Timeless Technology's last two year-end balance sheets: $\begin{array}{lrr} & 2018 & 2017 \\ \text { Common stock } & 2,000 & 1,000 \\\text { Retained earnings } & 2,000 & 2,340 \\ \text { Total common equity } & \$ 4,000 & \$ 3,340 \\\end{array}$
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The firm has never paid a dividend to its common stockholders.Which of the following statements is CORRECT?

• A) The company's net income in 2018 was higher than in 2017.
• B) The firm issued common stock in 2018.
• C) The market price of the firm's stock doubled in 2018.
• D) The firm had positive net income in both 2017 and 2018,but its net income in 2018 was lower than it was in 2017.
• E) The company has more equity than debt on its balance sheet.

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