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Would Someone Kindly Explain....


Chris Crompton
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What exactly the paid in capital category is on the stockholder's equity?

Also, it appears as if the Retained Earnings category is not actually retained earnings but simply the company's value?

Last but not least, when are dividends paid? Once a week or something?

Thanks!
Andrew Carnegie
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I'll try to answer your questions; no guarantee my answers are 100% correct.

1) paid in capital is new cash a company gains from issuing stock via IPO

2) retained earnings plus paid in capital minus loans should equal company net worth (not the same as company market value -- that is function of latest stock price x number shares outstanding)

3) as I don't pay dividend, don't know, but am guessing daily as in human 24-hour days, at 12:03 AM game time.

hope this helps, or at least prompts players who've played EOS longer than I have to correctly answer your not-so-stupid questions (no question is stupid, ever)
Jurry Hart
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for point 3 dividends are paid every 24 human hours. At the same time CEO salary is payed out.
Chris Crompton
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Okay, thanks for the replies! Very helpful.

One more add-on question. It says zero dividends were paid the past few days, even though I set a dividend to $0.01 per share. What is the minimum amount I can set as a dividend? Am I below the minimum or is it simply a glitch?
shark laser
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I think that might happen if your company does not have enough funds to pay it out. Instead of taking a loan to cover it, it will not be paid out at all. I'm fairly sure you can set it as low as 0.001, but the last time I played with stocks was before they were turned into what they are now.
Jurry Hart
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I think the minimum was 0.1%, but not 100% sure
Chris Crompton
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Okay thanks for the replies!
Henry King
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For point two, retained earnings is not the same as company value. In some cases, if you raise a lot of money by going public at a high valuation, your net worth can be much higher than your retained earnings. If you have not gone IPO, then paid capital is very tiny, so does not affect net worth much. Virtually all of your net worth is then retained earnings.

In some cases, you can even have NEGATIVE paid capital if you have gone public, and then bought back stock for a high price per share, so you have paid out more to shareholders than you took in from them by issuing stock. This is very uncommon, but I have seen it happen in a few cases. This normally happens when a company goes IPO when it is small, and then much later, after earning a lot of money over time, it buys back stocks for a much higher price than the initial IPO price, but it can happen in other ways as well.
Chris Crompton
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Thanks BT.


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