The cash flow of a firm,also referred to as cash flow from assets,must be equal to the cash flow to
A)debt holders minus the cash flow to equity holders.
B)equity holders plus the cash flow to debt holders.
C)the government plus the cash flow to equity holders.
D)equity holders minus the cash flow to debt holders.
E)the government,the debt holders,and the equity holders.

Question

Quizplus · Accepted Answer

The cash flow of a firm, also referred to as cash flow from assets, must be equal to the cash flow to equity holders plus the cash flow to debt holders. This is because the cash flow of a firm is the total amount of cash that is generated by the firm's assets, and this cash must be distributed to the firm's equity holders and debt holders.

The Cash Flow of a Firm,also Referred to as Cash