Cash flow to shareholder is defined as:
A) total cash flow from the firm plus cash flow to the bondholders.
B) repurchases of equity less cash dividends paid plus new equity sold.
C) cash flow from operations less cash flow to creditors.
D) cash dividends plus repurchases of equity minus new equity sold.

Question

Quizplus · Accepted Answer

Cash flow to shareholders is defined as cash dividends paid to shareholders plus repurchases of equity (which return capital to shareholders) minus any new equity sold (which takes capital from shareholders). This reflects the net cash flow from the company to its shareholders.

Cash Flow to Shareholder Is Defined As