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I'm thinking of investing ($5000)in a startup company.  It is going to be an indoor shooting range and "pro-shop" for firearms sales...  

(This is not homework by the way, the information was pulled straight from the business plan of the owners - thank you!)

I need help with the numbers. The Company is offering $250,000 investor equity (founderís shares) which equals 10% of the total business with the minimum investment amount of $2,500 which is equal to one share. The Company also needs $350,000 in loan guarantees due to the size of the loan, so we will offer Loan Guarantors a 1% stake (10 Shares) in the company for each $50,000 guaranteed on the Business Loan. Dividends will be paid annually to investors asa percentage of the Net Profit. Investors will be offered a chance to reinvest a percentage of their dividends to further expand the company as needed. The reinvestment, if needed, will be a percentage set at the annual shareholders meeting. Investors choosing not to reinvest will have their shares diluted.  My question is: If dividends are paid annually as a percentage of profits, roughly how much would I earn each year if I invested $5000 - based on these "estimated" profit earnings?     ---> Year 2015 =$217,065,  2016 = $240,950, 2017 =$265,953

I am meeting with the owners tomorrow, so any info asap would be appreciated!  Thank you!

  Did you receive my answer to this question?  I had replied to you several days ago, but just received an overdue notice that it is still pending.
  If you did not get my reply, please let me know and I can try again.

Best Regards,
Paul Henneman
ValuEngine, Inc.

Beginner Investing

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Paul Henneman


I can answer any questions on investment strategies. Specifically, my expertise lies in long term investment strategies designed to beat market performance while reducing risk. Not get rich quick schemes, but solid investing strategies. DO NOT SEND ME YOUR HOME WORK QUESTIONS! Over one half of the questions I receive are clearly students in finance or economic classes asking for answers to their homework questions. Most of these come from India. I won't answer them, do your own work. However, I welcome all investors trying to negotiate how to invest in stocks, mutual funds, ETF's, and other investments.


15 years in a leadership role at a financial research company. We sell research to institutions such as Wells Fargo, Fidelity, Thomson Reuters, Bloomberg, Bank of NY, Scotia Bank, and others.

Florida International University, University of Florida

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