Cash flow to stockholders is defined as:
A)interest payments.
B)cash dividends plus repurchases of equity minus new equity financing.
C)cash flow from financing less cash flow to creditors.
D)repurchases of equity less cash dividends paid plus new equity sold.
E)None of the above.

Question

Quizplus · Accepted Answer

Cash flow to stockholders includes cash dividends paid out plus any repurchases of equity (which reduce the number of outstanding shares) minus any new equity financing (such as issuing new shares). This reflects the cash flow specifically to the owners of the company's stock, as opposed to cash flow from financing or cash flow to creditors.

Cash Flow to Stockholders Is Defined As