Cash Flows to Stockholders If you buy a share of stock,you can receive cash in two ways o The company pays dividends You sell your shares either to another investor in the market or back to the company As with bonds,the price of the stock is the present value of these expected cash flows3 Cash Flows to Stockholders n If you buy a share of stock, you can receive cash in two ways q The company pays dividends q You sell your shares either to another investor in the market or back to the company n As with bonds, the price of the stock is the present value of these expected cash flows