> > TGC has fixed the dividend at 7.2g per annum per share. More correct will be to state that TGC 'has currently set' the dividend at 7.2g per annum per share.
They can change it any time, making it higher or even suspending it if business goes bad... > > Based on current price of gold, TGC will owe US$321,667 per year in > dividend payments, of which only $32,1667 is paid to outside investors, > and $289,500 is paid to the other 3600 shares presumably held by TGC > founders and staff. Correct. They state there are 4000 shares in total. They make no mention about any difference between the 400 shares offered in the ipo and the 3600 shares held by the owners, so we can assume they are the same. > > It seems that their 1st year of dividend payments (assuming they make the > profit to pay them) is disproportionately high to the amount of capital they > will raise, and a large amount of the capital that should be available for > operational growth will be distributed to inside shareholders. This depends what profit TGC is making, information which is normally given to the shareholders. If they make $500000 a year, they can easily give $321,000 in dividends. But if they only make $100000 a year, they will be paying out of the capital base indeed (which is not unacceptable as long as the shareholders are informed about it). Danny --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
