Esim - The Golden Company – Public Company Plan of Action
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The Golden Company


The Golden Company – Public Company Plan of Action

Initial shares – 1000
Shares to be held by CEO – 532
Shares to be sold to investors – 468
Price per share – 5 gold

Total Initial Capital – 2390 gold
Initial Value Per Share – 2.39 gold

Initial Investment

468 shares will be sold for 5 gold each. 100% of that gold will go into the company for initial capitalization, in addition to the initial 50 gold investment by the CEO. 2340 initial gold will be used to create six Q5 companies. The remaining 50 gold will be used as working capital (salary money). The value per share will never go below 2.34 gold per share – no additional shares will be issued without keeping this value the same.

On-going Operations

Our current estimate is that each Q5 company will produce approximately 1.33 gold per day in profit. That profit translates into roughly 8 gold per day for the entire company. It is noted that such profit may be more or less, and that all efforts will be made to maximize profits regardless of market conditions. The company may decide to expand using current profit (with the approval of the majority of non-CEO shareholders), or issuing new shares for additional capital (selling the same percentage of shares to the public, and requiring at least 5 gold per share payment for those sold publicly).

Dividends

Using the assumption of 8 gold profit per day from on-going operations, this company will earn a net profit of 240 gold per month (assuming 30-day months). With the exception of investor-approved expansion, all net profits will be distributed on a weekly basis; the company will retain approximately 50-100 gold in working capital to ensure the companies run smoothly. The CEO will send back 100% of the gold received from each initial dividend, and such amount will be re-distributed as a second dividend. The net effect of this is that, collectively, investors will receive 71.6976% of the net income, while the CEO will receive the remainder (see example calculation below).

Return on Investment

(NOTE: Calculations are done on a 30-day basis for demonstration purposes; as noted above, dividends will be sent weekly). Assuming monthly profit of 240 gold, each investor share will receive 0.24 gold per month from the initial dividend. The CEO will receive 127.68 gold per month from his shares. The 127.68 gold will be returned to the company and re-issued as an additional dividend. This will give an additional 0.12768 gold per share to each shareholder. Thus, each investor share will earn 0.36768 gold per month – a return of 7.3536% per 30 days.

Timeframe

Dividends would not commence until at least one Q5 company is up and running (i.e., until at least 78 shares are sold).


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