Contents 

Introduction
Firm Name
Financial Management
Debt
Equity
Dividends
Bonds
Product Marketing
Pricing and Promotion
Pricing
Advertising
Public Relations
Development
Development
Abandon a Product
Launch a New Product
Firm Marketing
Distribution
Branding
Operations Management
Capacity Planning
Production Efficiency
Quality
Production Planner
Viewing and Copying Reports
Copying and Pasting a Text Based Report
Copying and Pasting a Graph
Saving a Graph as an Image
Firm Performance Indicator
Great!
Good
Steady
Bad
Very Bad!
Key Performance Indicators (KPIs)
Retail Sales
Retail Sales Increasing
Retail Sales Steady
Retail Sales Decreasing
Revenue
Revenue Increasing
Revenue Steady
Revenue Decreasing
Efficiency
Efficiency Increasing
Efficiency Steady
Efficiency Decreasing
Income
Income Increasing
Income Steady
Income Decreasing

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Equity

The Equity decision screen is used to issue or repurchase shares (equity) in your firm.

Your Book Equity is the value of the equity in your firm according to your balance sheet, i.e. share capital plus retained earnings. This is the difference between the book value of your assets and your liabilities.

Your Market Equity is the market value of your currently issued shares, e.g. if you have 1 million shares and a share price of $8, then your market equity is $8m.

Issuing Shares

You can issue shares to raise more capital (cash) by selecting the Issue button and entering the amount of capital you wish to raise. The maximum amount of capital you can raise in a year is 50% of your market equity, so you can increase the number of outstanding shares by up to 50%.

Repurchasing Shares

You can repurchase shares to reduce any excess cash your firm has, by returning those funds to your shareholders. Selecting the repurchase button allows you to enter a dollar value of shares to repurchase, or you can move the slider to the desired position. Note that the maximum value of shares that you can buy back in a year is 25% of your market equity.

To issue or repurchase shares in your firm either move the slider or click in the appropriate white box and enter the desired figure.

See Also

Financial Management

Debt

Dividends

Bonds