The net new equity raised by a firm during a given year can be calculated as:

A) New equity sales minus equity repurchases plus retained earnings.
B) New equity sales minus equity repurchases plus retained earnings minus dividends paid.
C) New equity sales minus equity repurchases.
D) New equity sales plus retained earnings.
E) New equity sales minus dividends paid.

Net New Equity

The amount of money raised by a company through the issuance of new shares, minus any shares repurchased.

Equity Repurchases

The process by which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

New Equity Sales

New equity sales refer to the process of issuing new shares of stock to investors in order to raise capital for the corporation.