The three financial statements that every company produces include the income statement, the balance sheet and the statement of cash flows. The cash flow statement provides information about the state ...

Dividends are after-tax cash payments to shareholders. The retained-earnings account in the stockholders' equity section of the balance sheet holds the accumulated profits, minus dividend payments.

Calculate the present value of each year's cash flow by dividing by (1 + discount rate)^number of years. Sum all present values to find the total value of projected cash flows, which in this example ...