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Hold onto BIOGEN

0 (0%)

Sell BIOGEN to reinvest elsewhere

0 (0%)

Sell BIOGEN to create a new Biotechnology company(100% owned by Peak)

2 (50%)

Sell BIOGEN to buy up several weaker, well run companies

2 (50%)

Total Members Voted: 4

Voting closed: February 14, 2012, 09:35:34 pm

[gimlet]

How does this relate to the purchase price of buying B or C bonds? the interest paid should be higher... but err what determins the face value?[/s]

I think in the game the face value is always $1million.  When a corporation issues bonds, they receive the market price, which at that instant is equal to the face price because the coupon rate of the bond is forced to be the the proper risk-adjusted interest rate required to do that in the current market conditions.

Edit: A note from the manual on how the credit rating of the bonds is determined:

Note that your company's total debt, immediately after the
bond offering, including accrued taxes and bank loans, as
well as the new bonds that will be outstanding, is taken into
account in determining your credit rating when the bonds are
issued. Thus you are always offered the option of applying
some or all of the proceeds of the bond issue to pay off some
or all of your company's bank loan at the same time the
bonds are issued, which will help you to get a lower interest
rate than if you issued the bonds on top of the bank loan, and
then later decided to use some of the money to pay off the
bank loan.

[Deadmeat1471]

Ah.

2032 now...

Well Things have gone pretty badly. I'm a fail romney. NatWest basicly went under. It just dived and eventually I sold the stock for a loss, but I still had some capital to throw around.

Peak holdings is still around, I basicly looked at emerging industrys, Aerospace and defence along with pharmaceuticals it seems are the order of the day.

Spoiler (click to show/hide)

Watson Pharma - I took this company, fairly small one of the bottom 4 in pharm's, injected capital, bought their bonds back and paid off some debt. Then crash course of 40% growth PA for about 2 years so far, they're doing phenomenal. The only way I could be pleased more with this company is if the interest rates would ease off so the borrowing isn't quite as costly. Still, the stockprice has skyrocketed from around $12 in 2029 to around $50 in 2031. We 100% own this company.

Spoiler (click to show/hide)

Dassault Aviation - A mid-low range Defense industry, was up to its eyeballs in debt, injected abit of capital here too paying off some of the debt, a very good company. Stockprice is hanging around 45, but the company is making gains. I'm holding off rapid growth, about 5-10% for dassault until I can pay off a chunk of the debt. Interest rates are rising again WHERE IS MIT ROMNEY WHEN I NEED HIM?

Spoiler (click to show/hide)

[mainiac]

You inject capitol into struggling companies?  Romney would be spinning in his grave!

If you inject capitol, can you get it back out again or what?

[Deadmeat1471]

You inject capitol into struggling companies?  Romney would be spinning in his grave!

If you inject capitol, can you get it back out again or what?

The company has more than 5x its value now for a small amount of moneys. Still growing strong!

*I'm gonna get it back and some when I sell the stock. Injected about 1 Billion, currently the companys stock has risen in value by at least 2 billion and isn't finished yet!

[NRDL]

Hmmm...defense sounds cool.  I'd love it if you could control enough corporations to dominate every industry.  Is it alright if, at the end of an update, put the current companies, current capital, leading industries, etc? 

[Deadmeat1471]

Hmmm...defense sounds cool.  I'd love it if you could control enough corporations to dominate every industry.  Is it alright if, at the end of an update, put the current companies, current capital, leading industries, etc?

Sure no prob.

[NRDL]

Thanks.