Which of the Following Best Represents Cash Flows to Investors

question 6

Multiple Choice

Which of the following best represents cash flows to investors?

• A) Cash flow from operating activity, plus cash flow generated from net working capital
• B) Earnings before interest and taxes times 1 minus the firm's tax rate
• C) Net income minus dividends paid to preferred stockholders.
• D) Cash flow from operating activity minus cash flow invested in net working capital minus cash flow invested in long-term assets.

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Definitions:

Quorum

The least number of attendees required for a meeting's activities to be considered valid.

Proper Purpose

Acting with a legitimate objective, especially in the context of corporate governance where actions should align with the best interests of the company and its shareholders.

Shareholders

Individuals or entities that own shares in a corporation, making them part owners of the company with certain rights and responsibilities.

Proxy

A person authorized to act on behalf of another, especially in voting at a meeting or in corporate matters.