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YFBU
Jan 24, 2010, 02:51 AM
Hello
If an investor puts in $70,000 in shares in a new company, and the Director/proprietor has $1000, in shares and for EG. The company makes $10,000 profit what is an expected dividend for the main share holder and the Director?

ArcSine
Jan 24, 2010, 07:04 AM
Are the shares of the same class (different classes frequently have different earnings-participation arrangements).
How many shares are owned by each? (Shares acquired at different times, or under different circumstances, are frequently acquired at different per-share amounts--and thus the total dollar investment isn't indicative of the number of shares.)
What the is corporation's expected payout ratio?

These three variables must be pinned down before you can know the expected dividend payouts.