Cash flow to stockholders is defined as:
A)cash flow from assets plus cash flow to creditors.
B)operating cash flow minus cash flow to creditors.
C)dividends paid plus the change in retained earnings.
D)dividends paid minus net new equity raised.
E)net income minus the addition to retained earnings.

Question

Quizplus · Accepted Answer

Cash flow to stockholders is calculated as dividends paid minus net new equity raised, reflecting the actual cash returned to shareholders.

Cash Flow to Stockholders Is Defined As