The dividend is the amount of money that is paid out to shareholders on a per-share basis each year. Investors disregard dividends in excess of earnings per share because they feel they are unsustainable. Are you looking for perfect Capsim Stock Guide? Worry no more! We got you covered!
If your earnings per share (EPS) is $1.50 per share and your dividend is $2.00 per share, for example, shareholders would discount anything above $1.50 per share as a factor in the stock price. Dividends have a little influence on the overall performance of stocks. There is, however, one important distinction between Capstone and the real world: there are no external investment alternatives available in Capstone.
If you are unable to use your earnings to grow your company, you will wind up with a large number of idle assets. Capstone is constructed in such a manner that your company is more likely to become a “cash cow” in following rounds, generating additional revenue. Ultimately, how you handle the spin-off is crucial, and dividends are a tremendous tool in your arsenal.
You have the option to sell your inventory. Your retirement sum must be less than the greater of the following:
In order to keep your cash account active throughout the year, financial transactions are performed directly from it. If you are unable to manage your finances properly, Capstone will present you with an emergency loan to make up for the deficit. The loan is provided by Big Al, a person who shows up at your door with a checkbook and a grin on his face. Big Al agrees to provide you with a loan in the exact amount of the shortage.
In order to make it profitable for Big Al, you must pay one year’s worth of current debt interest on the loan, plus a 7.5 percent penalty fee, in addition to the loan principal. For example, assume that you have a $10,000,000 deficiency on December 31 and that the current loan interest rate is 10 percent. On the $10,000,000 ($1,000,000), you pay one year’s interest plus an additional 7.5 percent, or $750,000, penalty, for a total of $1,000,000 in fees.
Any other current debt that is due at the start of the next year is merged with the emergency loan to create a single payment. You don’t have to do anything extraordinary in order to get it back. You must, however, make a decision on what to do with your existing debt (pay it off, re-borrow it, etc.). The interest penalty is only applicable to the year in which the emergency loan is taken; it is not applicable to any other years.
Even if you are profitable, emergency loans have a negative impact on the value of your shares. In the event that you experience a liquidity problem, your investors will have an unfavorable opinion of your performance. In addition to any outstanding debt from the previous year, emergency loans are added. The total amount of current debt is given in the Due This Year box under Current Debt.
Emergency loans are typically employed when sales estimates for the previous year were higher than actual sales, or when the Finance Department is unable to raise funds for capital expenditures such as capacity and automation purchases.
Your company determines the number of days that must elapse between transactions and payments. Customers may be given 30 days to pay their bills (accounts receivable), whereas suppliers may be given 60 days to receive payment (accounts payable) (accounts payable).
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