Below is the common equity section (in millions) of Teweles Technology's last two year-end balance sheets: Teweles has never paid a dividend to its common stockholders. Which of the following statements is CORRECT?

Question

Quizplus · Accepted Answer

Given that Teweles has never paid a dividend to its common stockholders, the increase in the common equity section from one year to the next can only be due to the company issuing more common stock or retaining earnings (net income). Since the question does not provide information about the company's balance sheet structure, debt levels, net income, or stock price changes, the only conclusion that can be drawn from the information given is that Teweles issued common stock in 2009.

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