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A negative cash flow to stockholders indicates a firm: __________.
a. had a negative cash flow from assets.
b. had a positive cash flow to creditors.
c. paid dividends that exceeded the amount of the net new equity.
d. repurchased more shares than it sold.
e. received more from selling stock than it paid out to shareholders.

Respuesta :

Answer:

e. received more from selling stock than it paid out to shareholders.

Explanation:

As we know that

Cash Flow to stockholders = Dividends paid to stockholders - net New Equity raised.

So as per the above formula and the given options, the negative cash flow to stockholders would represented a firm that the receipt from selling the stocks would be greater than the dividend i.e. paid off

hence, the correct option is e.  

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