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Subject: The first business round - dividends and share increases rss

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James
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Hello. I have two rules questions that are similar and that I think I know the answers too, but one led to the other so here they are:

On the first business round of the first turn, if a profitable company pays a dividend does the share value increase? The rulebook states that the the value increases only if the net income is greater than the previous round, there wasn't a previous round so no increase right?

Nrxt question. On the first business round (that is not the first of the game) in which a new company is profitable and pays a dividend does the the share value increase? The company is more profitable than the previous round but only because it did not previously exist and did not have a net income one way or the other, so my assumption is that the share value does not increase. Sound good?

Thanks in advance for any corrections or clarifications.
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Dave Eisen
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Not good. Whatever the dividend is, it is greater than zero. So the share value does increase.
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James
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Are you sure? Is this the generally accepted way of doing this?
The wording in the rulebook is:

If the railroad's Net Income is greater than the previous round and if dividends are paid, move the railroad's valuation counter to the right.

No net income was previously calculated if it is a company's first business round.
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Chris Montgomery
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moujamou wrote:
Hello. I have two rules questions that are similar and that I think I know the answers too, but one led to the other so here they are:

On the first business round of the first turn, if a profitable company pays a dividend does the share value increase? The rulebook states that the the value increases only if the net income is greater than the previous round, there wasn't a previous round so no increase right?

Unless I have been playing it wrong for years, the share value increases. The "previous round" is the Stock Round immediately prior. Note that rules say "previous round", not "previous business round".

Quote:
Nrxt question. On the first business round (that is not the first of the game) in which a new company is profitable and pays a dividend does the the share value increase? The company is more profitable than the previous round but only because it did not previously exist and did not have a net income one way or the other, so my assumption is that the share value does not increase. Sound good?

Same as my answer above, the share value increases. Note that a business starts with a Net Income of "0" and the first "round" is a Stock Round.

The easiest thing to do and remember is to just follow the rules as printed on the board, using the current board state at that time to make decisions. Net Income higher now than shown on the Net Income chart and paying out dividends? Increase share price.

I completely understand your confusion because of the wording of the rules, but I think the rules make sense, even worded poorly. It says "previous round" not "previous business round" - the previous round when you are on the first business round of the game was the "stock round" immediately prior, which fixed the Net Income at "0" when the company was opened.

I hope that helps!
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James
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Brilliant, thanks for explaining it. I just didn't occur to me that by "round" it meant exactly that. Schoolboy error. Thanks again.
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