Question

How do you calculate cash flow to stockholders?

1) Net Income - Dividends
2) Net Income + Dividends
3) Net Income / Dividends
4) Net Income * Dividends

Answer 1

To calculate cash flow to stockholders, subtract dividends from net income.

Step-by-step explanation:

To calculate cash flow to stockholders, you can use the formula:

Net Income - Dividends

Net income represents the total earnings of the company, and dividends are the payments made to shareholders. By subtracting dividends from net income, you can determine the cash flow that is available to be distributed to stockholders.