Question

Peggy Grey's Cookies has net income of $460. The firm pays out 37 percent of the net income to its shareholders as dividends. During the year, the company sold $91 worth of common stock. What is the cash flow to stockholders

Answer 1

Answer: $79.20

Step-by-step explanation:

Cashflow to Stockholders is calculated by deducting the Common stock value from dividends;

= Dividends - common stock

= (37% * 460) - 91

= $79.20