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15 September, 07:22

Peggy Grey's Cookies has net income of $400. The firm pays out 30 percent of the net income to its shareholders as dividends. During the year, the company sold $85 worth of common stock. What is the cash flow to stockholders

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  1. 15 September, 07:34
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    Cash flow = $35

    Explanation:

    Cash flow = Payout ratio*net income-price of stock = 0.30*400-85=35
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