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

question 100

Multiple Choice

Below is the common equity section (in millions) of Timeless Technology's last two year-end balance sheets: $\begin{array}{ll}&\underline{2013} & \underline{2012}\\\text {Common stock}&\$2,000&\$1,000\\\text { Retained earnings }&\underline{2,000} & \underline{2,340}\\\text {Total common equity}&\underline{\$4,000}&\underline{3,340}\end{array}$ 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 2013 was higher than in 2012.
• B) The firm issued common stock in 2013.
• C) The market price of the firm's stock doubled in 2013.
• D) The firm had positive net income in both 2012 and 2013, but its net income in 2013 was lower than it was in 2012.
• E) The company has more equity than debt on its balance sheet.

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Definitions:

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