Cash flow to stockholders is defined as:
A) the total amount of interest and dividends paid during the past year.
B) the change in total equity over the past year.
C) cash flow from assets plus the cash flow to creditors.
D) operating cash flow minus the cash flow to creditors.
E) dividend payments less net new equity raised.

Question

Quizplus · Accepted Answer

Cash flow to stockholders is the cash that is paid out to stockholders in the form of dividends less any new equity that was raised during the year. This represents the net cash flow that has been given to the stockholders. Therefore, the correct choice is E.

Cash Flow to Stockholders Is Defined As