For the year,Peggy Grey's Cookies had net income of $8,110.The firm paid out 30 percent of the net income to its shareholders as dividends and also paid $210 in interest.During the year,the company repurchased $500 worth of common stock and borrowed $250.What is the cash flow to stockholders?
A)$2,933
B)$1,893
C)$1,933
D)$2,433
E)$2,893

Question

Quizplus · Accepted Answer

Cash flow to stockholders = Dividends - Repurchase of common stock= 0.30 * $8,110 - $500= $2,433 - $500= $1,933

For the Year,Peggy Grey's Cookies Had Net Income of $8,110