Respuesta :
In addition to paying dividends of $3,680, the corporation may have bought back $7,480 worth of stock. The cash flow to investors for the entire year is then $11,160.
$3,680 was spent on dividends.
Own equity bought back equals $7,480
Dividends paid + Own equity repurchased - Net new equity issued = $3,680 + $7,480 - $0 = $11,160 in cashflow to stockholders for the year.
The net amount of money entering and leaving a business in the form of cash and cash equivalents is known as cash flow. The money received represents inflows, and the money spent investors represents outflows.
In the end, a company's ability to create value for shareholders is determined by its capacity to generate positive cash flows, or more precisely, by its capability to optimize long-term free cash flow (CFC). A company's free cash flow (FCF) is the cash it generates from its normal business operations after deducting any funds spent for capital expenditures (CapEx).
Cash flow is the inflow and outflow of funds inside a business.
Inflows of cash are a representation of outflows of cash, and vice versa.
The sources and expenditures of a company's investors money over time are shown in the cash flow statement, a particular kind of financial statement.
Learn more about Cash flow, here
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