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Below is the common equity section (in millions) of a companys balance sheets: 2009 2008 Common stock $2,000 $1,000 Retained earnings 2,000 2,340 Total common

Below is the common equity section (in millions) of a companys balance sheets:

2009

2008

Common stock

$2,000

$1,000

Retained earnings

2,000

2,340

Total common equity

$4,000

$3,340

This company has never paid a dividend to its common stockholders. Which of the following statements is CORRECT?

The companys net income in 2009 was higher than in 2008.

The market price of the companys stock doubled in 2009.

The company had positive net income in both 2008 and 2009, but the companys net income in 2009 was lower than it was in 2008.

The company has more equity than debt on its balance sheet.

The company issued common stock in 2009.

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