| Razzo (Little Upsilon) | Wednesday, June 1, 2011 - 09:32 pm 
Does increasing the profit transfer percentage decrease the value of state corporations, or the rate at which their value increases? In other words, if my country was doing fine financially and I wanted to focus on increasing the value of its state corporations rather than, for example, keeping the country's profit/loss at a high level, would it make sense to lower the profit transfer percentage as a strategy in doing so? |
| white darkness (Little Upsilon) | Wednesday, June 1, 2011 - 10:14 pm
Increasing profit transfer would send more money directly to you each month.
Decreasing would leave more money behind until they hit the max cash a corp can have, then they'd send it to you.
How this would affect market value? Who knows? It all depends on how they're little calculations are done.
Though really, why bother increasing market value? |
| Synicus (White Giant) | Wednesday, June 1, 2011 - 10:43 pm
Market value is a requirement for IPO. Corporate cash is part of the Market value. |
| white darkness | Thursday, June 2, 2011 - 01:13 am
It's fairly hard to not hit the market value requirement for an IPO. At issue is the P/E requirement.
Beyond that minimum value though, market value only has one meaning. A simple and beautiful meaning. |
| Crafty (Kebir Blue) | Thursday, June 2, 2011 - 01:28 pm
I would lower profit transfer to increase corp asset value and hence MV. Initially this would lower your country bottom line but automatic cash transfer would kick in and so restore your country balance sheet. |
| Skandar (Little Upsilon) | Thursday, June 2, 2011 - 01:47 pm
@Crafty, there is also another issue to consider.
Automatic cash transfers do not get entered on the profit and loss section of your financial statement. This means that lowering your profit transfer has a knock-on effect on your country's financial index (which is calculated partly on your profit and loss). My P&L jumped up noticeably when I increased profit transfer with a much smaller effect on corp value. I wouldn't have reached level 6 (I've dropped back since) without it. |
