GREY:WFEMF - Post by User
Comment by
kilgoron Feb 26, 2014 4:59pm
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Post# 22255747
RE:RE:Ned Goodman Owns This New CSE Stock Exchange
RE:RE:Ned Goodman Owns This New CSE Stock Exchange
.I might wait longer than that..... the mere mention of paying dividends implies excess profits beyond what is need to be reinvested into a junior company to provide further growth. Offhand, I can't think of a company that pays a dividend to preferred shareholders and nothing to common. Does anyone know of one?
So there is $4M loan @ 12%, hence the interest payment is $480K per year. At $0.13 per preferred, there are approx 30M preferred, hence the dividend must be 1.5cents per year.
Low risk commodity stocks pay a dividend around 3% of the share price. If our stock is a low risk producer (which I believe it will be.... especially with Buffet's participation), the minimum stock price should be around $0.52. But this calculation is based upon only issuing a dividend on preferred shares and a very low, payable dividend. If there are dividends on common, then the share price will be higher.