A firm paid dividends of $70 this year. Last year, they had $800 in equity. This year, they had $600 in equity. They added $10 to the retained earnings this year. What was their CF to shareholders? Hint: CF to SH = dividends paid - net new equity Net new equity = equity this year - equity last year - addition to R/E
A firm paid dividends of $70 this year. Last year, they had $800 in equity. This year, they had $600 in equity. They added $10 to the retained earnings this year. What was their CF to shareholders? Hint: CF to SH = dividends paid - net new equity Net new equity = equity this year - equity last year - addition to R/E
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A firm paid dividends of $70 this year. Last year, they had $800 in equity. This year, they had $600 in equity. They added $10 to the
Hint: CF to SH = dividends paid - net new equity
Net new equity = equity this year - equity last year - addition to R/E
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