Question

Whole Wheat Farms, Inc. has a net income of $20,000 and a dividend payout ratio of 30 percent. The firm issued $12,000 worth of common stock during the period. The firm has no long-term debt. What is the financing cash flow for the period?
A. $2,500
B. $3,000
C. $6,000
D. $9,000
E. $25,000

Answer

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