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

Question 38

Multiple Choice

Below is the common equity section (in millions) of Fethe Industries' last two year-end balance sheets: 20152014 Camman stock $2,000$1,000 Retaned emring 2,0002,340 Tatal camman equity $4.000$3340\begin{array} { l r r } &2015&2014\\\text { Camman stock } & \$2,000 & \$1,000 \\\text { Retaned emring } & 2,000 & 2,340 \\\text { Tatal camman equity } & \$4.000 & \$3340\end{array}
The company has never paid a dividend to its common stockholders. Which of the following statements is CORRECTσ


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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