Merrimack Plastics has net income of $258,000. The firm pays out 35 percent of the net...

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Merrimack Plastics has net income of $258,000. The firm pays out 35 percent of the net...

Merrimack Plastics has net income of $258,000. The firm pays out 35 percent of the net income to its shareholders as dividends. During the year, the company sold $63,000 worth of common stock. What is the cash flow to stockholders?

$25,200

$26,400

$27,300

$28,400

$29,100

business finance

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Answer 1

Answer #1

Cash flow to stockholders=Dividend paid-Net new equity raised

Cash flow to stockholders=(258000*35%)-63000

Cash flow to stockholders=27,300

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Answer 2

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Merrimack Plastics has net income of $258,000. The firm pays out 35 percent of the net...

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Merrimack Plastics has net income of $258,000. The firm pays out 35 percent of the net...