Six months ago, Altman Metal Works repurchased $20,000 of its common stock. The company pays regular quarterly dividends totaling $7,500 per quarter. What is the amount of the cash flow to stockholders for the past year if no additional shares were issued?

Question

Quizplus · Accepted Answer

The cash flow to stockholders includes dividends paid and stock repurchases. The company paid $7,500 in dividends per quarter, totaling $30,000 for the year. Additionally, it repurchased $20,000 of stock. Therefore, the total cash flow to stockholders is $30,000 + $20,000 = $50,000.

Six Months Ago, Altman Metal Works Repurchased $20,000 of Its