A firm's dividend payments less any net new equity raised is referred to as the firm's:
A)operating cash flow.
B)capital spending.
C)net working capital.
D)cash flow from creditors.
E)cash flow to stockholders.

Question

Quizplus · Accepted Answer

Dividend payments to stockholders represent a cash outflow to the firm. Any net new equity raised represents a cash inflow. Subtracting the inflow from the outflow gives the cash flow to stockholders.

A Firm's Dividend Payments Less Any Net New Equity Raised