Cash Flows from Financing Activities, as Part of the Statement

question 136

True/False

Cash flows from financing activities, as part of the statement of cash flows, would include any payments for dividends.

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Definitions:

Rate of Return

The appreciation or depreciation in value of an investment over an agreed period, conveyed as a percentage of the investment's starting value.

Dividend Increase

An action taken by a company's board of directors to raise the amount paid out to shareholders in dividends.

Required Return

The smallest anticipated return that an investor looks to obtain by putting money into a certain asset, factoring in the risk entailed.

Annual Dividend

An annual dividend is the total amount of dividend payments a shareholder receives from a company in one financial year.