Below Is the Common Equity Section (In Millions)of Fethe Industries

question 31

Multiple Choice

Below is the common equity section (in millions) of Fethe Industries' last two year-end balance sheets: $$\begin{array} { l r r } & 2015 & 2014 \\\text { Common stock } & \$ 2,000 & \$ 1,000 \\\text { Retained earnings } & 2,000 & 2,340 \\\text { Total common equity } &\underline{ \$ 4,000 }& \underline{\$ 3,340}\end{array}$$ The company has never paid a dividend to its common stockholders.Which of the following statements is CORRECT?

• A)The company's net income in 2014 was higher than in 2015.
• B)The company issued common stock in 2015.
• C)The market price of the company's stock doubled in 2015.
• D)The company had positive net income in both 2014 and 2015, but the company's net income in 2014 was lower than it was in 2015.
• E)The company has more equity than debt on its balance sheet.

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