Cash Flow to Stockholders Must Be Positive When

question 79

Multiple Choice

Cash flow to stockholders must be positive when:

• A)the dividends paid exceed the net new equity raised.
• B)the net sale of common stock 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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