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18ACO71 R. SRIRAM
on Nov 08, 2024

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Which one of the following will cause cash flow to stockholders to increase, all else constant?

A) A secondary common stock offering
B) A decrease in dividends per share
C) An increase in cash flow to creditors given no change in cash flow from assets
D) A decrease in cash flow from assets given no change in cash flow to creditors
E) A decrease in cash flow to creditors given an increase in cash flow from assets

Cash Flow To Stockholders

The net amount of cash and cash-equivalents being transferred into and out of a company, specifically relating to the dividends paid to stockholders and the cash received from issuing new shares.

Dividends Per Share

The total amount of declared dividends for every share of common stock issued, divided by the number of outstanding shares.

Common Stock Offering

The process by which a corporation issues new shares of common stock to the public.

  • Evaluate the consequences of transactions on owners' equity.
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Alisha PatelNov 14, 2024
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