Below is the common equity section (in millions) of Fethe Industries' last two year-end balance sheets: $$\begin{array} { l r r }
& 2020 & 2019 \
\text { Common stock } & \$ 2,000 & \$ 1,000 \
\text { Retained earnings } & 2,000 & 2,340 \
\text { Total common equity } & \$ 4,000 & \$ 3,340
\end{array}$$ The company has never paid a dividend to its common stockholders.Which of the following statements is CORRECT?

Question

Below is the common equity section (in millions) of Fethe Industries' last two year-end balance sheets: $$\begin{array} { l r r } 
& 2020 & 2019 \
\text { Common stock } & \$ 2,000 & \$ 1,000 \
\text { Retained earnings } & 2,000 & 2,340 \
\text { Total common equity } & \$ 4,000 & \$ 3,340
\end{array}$$ The company has never paid a dividend to its common stockholders.Which of the following statements is CORRECT?

Quizplus · Accepted Answer

The increase in common stock from $1,000 million in 2019 to $2,000 million in 2020 indicates the company issued more common stock in 2020. The other statements cannot be directly inferred from the given information.

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