Q1) Cash flow to stockholders is defined as: Select one: 1. interest payments. 2

Question

Q1) Cash flow to stockholders is defined as:

Select one:

1. interest payments.

2. cash dividends plus repurchases of equity minus new equity financing.

3. cash flow from financing less cash flow to creditors.

4. repurchases of equity less cash dividends paid plus new equity sold.

5. None of the above.

----------------

Q2)

Use the following income statement and balance sheet to answer the next three questions (20-23):

What is the change in the net working capital from 2009 to 2010?

Select one:

1. $1,235

2. $1,035 $1,335

3. $1,035

4. $3,405

5. $4,740

What is the operating cash flow for 2010?

Select one:

1. $845

2. $1,930

3. $2,215

4. $2,845

5. $3,060

What is the cash flow of the firm for 2010?

Select one:

1. $405

2. $1,340

3. $1,340 $430

4. $2,590

5. $3,100

___

Explanation / Answer

1)

cash dividends plus repurchases of equity minus new equity financing will be the answer

as buyback of shares are inflow to shareholders, Dividend is also a cash flow for the stockholders as inflows

While new shares issue means stockholders need to pay cash to get shares that means outflow.

we do only first question as per chegg guidlines

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.