Cash flow to stockholders is best defined as
A)the total dividends paid.
B)the cash flow from assets plus the cash flow to creditors.
C)cash dividends plus repurchases of equity minus new equity financing.
D)repurchases of equity less cash dividends paid plus new equity sold.
E)the net change in common stock and capital surplus.

Question

Quizplus · Accepted Answer

Cash flow to stockholders is the net cash flow received by the stockholders of a company. It includes cash dividends, repurchases of equity, and new equity financing. Therefore, choice C, which includes cash dividends plus repurchases of equity minus new equity financing, is the best definition of cash flow to stockholders.

Cash Flow to Stockholders Is Best Defined as