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A Positive Cash Flow to Stockholders Indicates Which One of the Following

Question 56

Multiple Choice

A positive cash flow to stockholders indicates which one of the following with certainty?


A) The dividends paid exceeded the net new equity raised.
B) The amount of the sale of common stock exceeded the amount of dividends paid.
C) No dividends were distributed, but new shares of stock were sold.
D) Both the cash flow to assets and the cash flow to creditors must be negative.
E) Both the cash flow to assets and the cash flow to creditors must be positive.

Correct Answer:

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