Ask Question
8 September, 01:53

Hurricane Industries had a net income of $143,450 and paid 45 percent of this amount to shareholders in dividends. During the year, the company sold $89,250 in new common stock. What was the company's cash flow to stockholders?

+1
Answers (1)
  1. 8 September, 04:42
    0
    (-$24,697)

    Explanation:

    Given that,

    Net income = $143,450

    Dividend payout ratio = 45 percent

    company sold $89,250 in new common stock

    Total dividend:

    = Net income * Dividend payout ratio

    = $143,450 * 0.45

    = $64,553

    Therefore,

    Company's cash flow to stockholders:

    = Total Dividend - Net new equity raised

    = $64,553 - $89,250

    = (-$24,697)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Hurricane Industries had a net income of $143,450 and paid 45 percent of this amount to shareholders in dividends. During the year, the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers