Dividends

[00Elf]

I have been playing RT3 for a while now but one question has been bugging me,

Do players recieve dividends as well, if the dividend rate is at $1 and I own 1000 shares do I get $1000?

[Gwizz]

GeeWizz, I'm not sure but I think that is correct. 

I always let the dividends stay in the RRs bank account and I don't take them.

[Bannon]

Yes, that is correct.

You are paid a dividend quarterly -- end of March, June, Sept., and Dec.  You don't receive the full $1 per share at this time... but 25% of it (since it is quarterly!  :) )  (You can watch the figures of your "cash" change at the end of the month).

I play aggressively and generally go deep into debt with my purchasing power.  I try to own at least 25% of my own companies stock... the more the better.  If things get tight, I will increase the dividend rate substantially (if my RR has lots of cash on hand).  This way, I am using my RR's cash-on-hand as my own piggy bank.  A high dividend transfers the money to me.  Word of caution though... this makes your stock very attractive to the AI players and they may start to buy your stock.

[belbincolne]

It is correct that you will get the dividend as you would expect but this answer is not quite as simple if you are substantially in debt.

I've posted on this on several RT3 boards and no-one has been able to figure out why - or say it doesn't happen to them.

To give an (slightly exaggereated) example:

I've borrowed $2m and bought 100% of my company shares. I have virtually no borrowing capacity left so to get back into the black I increase dividends to (lets be realistic) $500k. A year later my borrowings should have reduced to about $1.5m. But - in these circumstances - they scarcely alter. It's suggested that its because you pay interest on the loan, which would be fair enough, and ways of finding out what that interest rate is have been suggested but, in my example, it would have to be 25% and no-one has suggested anything anywhere near that high. I've had examples where the interest rate would have to be nearly 100%. Afraid I can't give a real example without checking through every active RT3 board and can't even remember what I titled my query.

The only time when its worth going through such major borrowing is if PNW or taking over all competitors is a scenario target but if you're playing one of these and reach a time when this is a possible option try it and see what happens! (Save the game first so you can go back and play it more sensibly after you've had all your shares sold for you because the game seems to have an inbuilt factor that if you've 99% borrowings your share price will have a major fall!)

[Hawk]

How do you borrow money as a player or a company? I know about issuing bonds but I haven't found any way to borrow money.

[Gwizz]

Issuing a company bond is a way to borrow money against the value of the company. 

A player can't borrow at least not in the normal way.  A play borrows by playing the stock market (margin buying or with short sells)

[Hawk]

Thanks Gwizz. I thought I was missing something. I already knew about them.  ;D

[Bannon]

Belbincolne --

You are correct that you are paying interest on the margin.  I have no idea how high the interest rate is, but I would expect it to be somewhat high.

When you go substantially into debt as an individual, the quickest way out is to acquire a company -- provided you own a substantial amount of stock in the target company.  When acquiring, ideally I own 50%+ of the target company stock -- that way  I can set my own price for the aquisition.  Pay the minimum amount for the company in normal circumstances.  If heavily in debt and you own a lot of the company's stock -- overpay for the target company.  Whatever percentage of the target company you own -- that money goes directly in your pocket.  Another way to transfer money from your company back to you. ;)