Cash Flow to Shareholders Must Be Positive When

question 6

Multiple Choice

Cash flow to shareholders must be positive when:

• A)the dividends paid exceed the net new equity raised.
• B)the net sale of ordinary equity exceeds the amount of dividends paid.
• C)no income is distributed but new shares of stock are sold.
• D)both the cash flow to assets and the cash flow to creditors are negative.
• E)both the cash flow to assets and the cash flow to creditors are positive.

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Definitions:

Consumer Products

Goods that are purchased for personal use or consumption by the general public.

Demographics

Statistical data relating to the population and particular groups within it.

Purchase Decision

The evaluation process leading to the choice of a product or service among several alternatives, culminating in the action of buying.

Frequency of Purchase

The rate at which customers buy a particular product or service over a specific period of time.