Author Topic: Issuing stocks and taking out loans & increasing ROE  (Read 3145 times)

Winnie

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Issuing stocks and taking out loans & increasing ROE
« on: February 19, 2017, 12:25:04 AM »
Hello, I was wondering when is a good time to take a loan? Would a 5-year or 10-year suffice? I feel that the 10-year loan would be better in the long-run. Also, when is a good opportunity to issue stocks? We are on Year 12 now, and it seems we won't be doing as well compared to the previous year. We definitely need some ending cash, so we are thinking of taking out a loan. Our EPS seems to be projected at $1.83, and we have yet to secure any private labels. Any recommendations in improving our net profit and ROE?

WinBusinessStrategyGameTips

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Re: Issuing stocks and taking out loans & increasing ROE
« Reply #1 on: February 19, 2017, 12:28:55 AM »
You should take out a loan when you need the money. Alternatively you can also sell shares to raise equity.

Something as general as raising net profit, I have a whole guide dedicated towards explaining the process.
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Winnie

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Re: Issuing stocks and taking out loans & increasing ROE
« Reply #2 on: February 19, 2017, 12:37:04 AM »
At the moment, we don't have enough money to purchase shares, would it be a wise decision to take our a loan and issue a few more stocks, or just do the former?

Thank you! I was looking through some of the guides so far.

WinBusinessStrategyGameTips

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Re: Issuing stocks and taking out loans & increasing ROE
« Reply #3 on: February 19, 2017, 01:09:37 AM »
This is a strategic decision, generally speaking most companies don't have excess money to do a variety of actions in the game. And this is what you will need to work out strategically with limited resources.
For the most up to date support in winning The Business Strategy Game (BGS) and the Global Business Simulation Game (Glo-Bus) visit www.bsgtips.com and Contact the Grand Champion.