The formula to calculate the Cash Flow to Stockholders (CF) is:
\[ CF = D - E \]
Where:
The total cash flow to stockholders is the amount of cash that moves to stockholders after new raised equity has been issued.
Let's assume the following values:
Using the formula to calculate the Cash Flow to Stockholders:
\[ CF = 500,000 - 200,000 = 300,000 \text{ dollars} \]
The Cash Flow to Stockholders (CF) is $300,000.
