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Homework answers / question archive / Net income=$137,700
Net income=$137,700. 35% of net income is distrubited as a dividend payment. New common stock was sold to stockholders for $85,500. What was cash flow to stockholders?
Computation of the cash flow to stockholder's:-
Net cash flow to stockholders = Dividends distributed - Net new equity
= ($137,700 * 35%) - $85,500
= $48,195 - $85,500
= -$37,305
