Dividends

The Dividend Decision screen is used to issue dividends to shareholders. A dividend is a payment by a company to its shareholders once they are profitable to make a return on their investment. The decision entered is the amount paid per share that has been issued by your company, for example a 50c dividend paid within a company that has 1,800,000 shares will cost your company $900,000. To pay a dividend, enter the amount (cents per share) that you want to pay. The Total Dividend ($) shown is the amount you will be paying in dividends.

Dividends have a positive effect on your Shareholder Value (SHV). MikesBikes restricts the maximum size of the dividend payment that you are allowed to make based on your average earnings per share to stop you accidentally bankrupting your firm.