Below is the common equity section (in millions)The firm has never paid a dividend to its common stockholders. Which of the following statements is CORRECT?

Question

Quizplus · Accepted Answer

Since the company's common equity section shows that it has never paid dividend to its common stockholders, it means that the only way the common stock can increase is through new issuances. Therefore, option B is correct. There is no information provided regarding the net income or market price of the stock to make a judgment on options A, C, and D. Also, the equity to debt ratio cannot be determined from the information given, so option E cannot be the correct answer.

Below Is the Common Equity Section (In Millions)The Firm Has