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

Multiple Choice

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?

A) The company's net income in 2019 was higher than in 2020.
B) The company issued common stock in 2020.
C) The market price of the company's stock doubled in 2020.
D) The company had positive net income in both 2019 and 2020, but the company's net income in 2019 was lower than it was in 2020.
E) The company has more equity than debt on its balance sheet.