What happens when you retire stock Capsim?
If you're flush with cash, want to reduce the number of outstanding shares, or amount of long- term debt, you can choose to retire stock or bonds. Retire Stock – You can buy back up to 5% of your outstanding shares each round.
What are the brokerage fees for issuing and retiring stock Capsim?
Brokers charge a 5% fee for issuing Stock and Bonds. Brokers charge a 1.5% fee to buy back Stock and retire Bonds early.
How does Capsim calculate stock price?
Stock price is driven by book value, the last two years' earnings per share (EPS) and the last two years' annual dividend. Book value is equity divided by shares outstanding. Equity equals the common stock and retained earnings values listed on the balance sheet.
Should you issue a dividend in Capsim?
In short, dividends should represent the “excess” profits that are not required for growth in working capital and new plant. Consider the alternative. If you keep the profits and do not put them to use, your financial structure must change. Idle assets, especially cash, will accumulate.
How do you increase profit in Capsim?
You can improve your margins two ways. If your company is a differentiator, you can raise prices. The company differentiates by creating high demand with a good design, high awareness, and easy accessibility. You sacrifice some of the demand with a higher price.
How do you retire a product in Capsim?
To discontinue a product, simply go to the Production area and sell all the capacity for that product by entering a negative value in the Buy/Sell capacity cell. Selling all the capacity will discontinue the product.
What does retire stock mean?
In order to retire stock, the company must first buy back the shares and then cancel them. Shares cannot be reissued on the market, and are considered to have no financial value. They are null and void of ownership in the company.
What does stock out mean in Capsim?
What happens when a product generates high demand but runs out of inventory (stocks out)? The company loses sales as customers turn to its competitors. This can happen in any month. The Market Share Report of the Capstone Courier (page 10) can help you diagnose stock outs and their impacts.
How do you increase earnings per share?
Earnings per share increases when the total number of outstanding share decreases in case of buyback. When expenses decreases and company is able to cut the cost then also the earnings of the company increases with increase in sales.
What is a good dividend yield?
2% to 4%What is a good dividend yield? In general, dividend yields of 2% to 4% are considered strong, and anything above 4% can be a great buy—but also a risky one.
How do dividend stocks work?
If dividends are paid, a company will declare the amount of the dividend, and all holders of the stock (by the ex-date) will be paid accordingly on the subsequent payment date. Investors who receive dividends may decide to keep them as cash or reinvest them in order to accumulate more shares.
How is stock dividend calculated?
Dividend yield is shown as a percentage and calculated by dividing the dollar value of dividends paid per share in a particular year by the dollar value of one share of stock. Dividend yield equals the annual dividend per share divided by the stock's price per share.