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Finance Decision Screen - Equity and Dividends
See also:
Finance Decision Screen - Debt
Finance Decision Screen - Investor PR
The Finance Decision Screens allows you manage the cash your firm has available to it by paying dividends to your shareholders, raising or repaying long-term debt, issuing or repurchasing equity (i.e. shares in your firm), and setting a budget for Investor Public Relations.
To issue or repurchase equity, move to the appropriate field on the Equity Tab and enter the dollar value of shares to be issued (based on the last period's closing share price).
To prevent speculatory share trading, a firm in a given year may not issue or repurchase more than a certain proportion of the value of the equity it currently has issued. You may not both Issue and Repurchase Equity in the same decision period. Share brokerage and other costs of the transaction are automatically deducted from the dollar figure you specify in your decision.
To enter the dividends amount, move to the Dividends tab and enter the number of cents you wish to pay as a dividend per share in the appropriate field. Dividends are paid on the number of shares outstanding at the end of the previous period (as listed on your balance sheet report).
In MikesBikes-Advanced you may not pay out in total dividends more than half your retained earnings (see your Balance Sheet). You also may not pay out dividends if your Share Price drops below $5. (Understandably, the directors won't approve it.) If you attempt to pay more than this then a message box appears telling you why you may not pay more, and telling you the maximum amount you may pay.
