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Investment Scenarios

Table that shows the breakdown of investment, appreciation, and dividend income for a shareholder who invested $50,000, $250,000, or $500,000 in the initial round of funding, (i.e., one round of funding of $4,000,000, net income distribution of 10% starting from year 3, and portfolio appreciation of 6% annually).

Year 50K Investor 250K Investor 500K Investor
1 50,000 shares ($50,000) 250,000 shares ($250,000) 500,000 shares ($500,000)
3 50,000 shares ($60,000)
Dividend: $5,000		 250,000 shares ($300,000)
Dividend: $25,000		 500,000 shares ($600,000)
Dividend: $50,000
6 50,000 shares ($69,120)
Dividend: $10,000		 250,000 shares ($345,600)
Dividend: $50,000		 500,000 shares ($691,200)
Dividend: $100,000
9 50,000 shares ($79,531.20)
Dividend: $15,000		 250,000 shares ($397,656)
Dividend: $75,000		 500,000 shares ($795,313)
Dividend: $150,000
10 50,000 shares ($84,000)
Dividend: $16,000		 250,000 shares ($420,000)
Dividend: $80,000		 500,000 shares ($840,000)
Dividend: $160,000

Note: The share values and dividends are based on the assumption that the net income distribution and portfolio appreciation are constant over the 10-year period. In reality, these values may vary from year to year depending on market conditions and the company's performance.

Assuming the same scenario as before, where the company raises $4,000,000 in initial funding through one round of equity financing, and invests in rental properties in areas with high demand for rental properties and low vacancy rates, and assuming the company duplicates the same investment every 3 years, we can calculate the potential return on investment for a shareholder who invested $50,000 in the initial round over a 10-year period, assuming a 6% annual appreciation and a net income distribution of 10% starting from year 3.

Year Share Value Dividend per Share Dividend Income Total Investment Value
1 $1.00 $50,000
3 $1.20 $0.10 $5,000 $67,500
4 $1.32 $0.12 $6,000 $76,500
6 $1.61 $0.22 $11,000 $105,500
7 $1.77 $0.28 $14,000 $125,000
9 $2.17 $0.44 $22,000 $176,500
10 $2.39 $0.52 $26,000 $205,500

In other words, a shareholder who invested $50,000 in the initial round of funding and assuming the company duplicates the same investment every 3 years would see their investment grow to $205,500 after 10 years, with a share value of $2.39 and a total dividend income of $26,000. Note that this is an estimate and the actual returns may be lower or higher, depending on the company's performance and market conditions.

Table that shows the breakdown of investment, appreciation, and dividend income for a shareholder who invested $50,000 in the initial round of funding and decided to invest an additional $50,000 every time the company duplicates the investment scenario every 3 years, assuming a 6% annual appreciation and a net income distribution of 10% starting from year 3, for a 15-year period:

Year Investment Amount Share Holdings Share Value Dividend per Share Dividend Income Total Investment Value
1 $50,000 50,000 shares $1.00 $50,000
3 $100,000 83,333 shares $1.20 $0.10 $8,333 $100,000
6 $150,000 146,341 shares $1.32 $0.12 $17,561 $192,195
9 $200,000 229,401 shares $1.61 $0.22 $50,268 $370,196
12 $250,000 341,025 shares $1.89 $0.35 $119,366 $665,983
15 $300,000 492,146 shares $2.21 $0.49 $241,207 $1,226,408

In other words, a shareholder who invested $50,000 in the initial round of funding and decided to invest an additional $50,000 every time the company duplicates the investment scenario every 3 years would see their investment grow to $1,226,408 after 15 years, with a share value of $2.21, a total dividend income of $241,207, and a total investment of $550,000. Note that this is an estimate and the actual returns may be lower or higher, depending on the company's performance and market conditions.

CONSERVATIVE INVESTMENT APPROACH

Investment model to show the return of investment for shareholders, we will use the following assumptions:

  • The investment fund will be raised through rounds of equity financing, with an initial round of $4,000,000.
  • Individual investors will own 1/share, with a minimum investment of $50,000 and a maximum of $500,000.
  • The total portfolio will have a 6% increase in value each year, starting in year 3.
  • The dividend paid to shareholders will be 6.8% of the portfolio value, starting in year 3.
  • The total projection will be for 5 years, starting in year 3.

To calculate the share of the initial investment worth, we can divide the total initial investment by the number of shares:
Initial investment per share = $4,000,000 / 4,000,000 shares = $1/share

To project the value of the portfolio over the next 5 years, we can use the following formula:
Portfolio value = Initial investment x (1 + annual return)^n
Where:

  • Initial investment = $4,000,000
  • Annual return = 6%
  • n = number of years

Starting in year 3, the portfolio value will be:

  • Year 3 portfolio value = $4,000,000 x (1 + 6%)^3 = $4,696,784
  • Year 4 portfolio value = $4,696,784 x (1 + 6%) = $4,982,687
  • Year 5 portfolio value = $4,982,687 x (1 + 6%) = $5,287,082

To calculate the shareholder dividend, we can multiply the portfolio value by the dividend percentage:

  • Year 3 dividend = $4,696,784 x 6.8% = $319,055
  • Year 4 dividend = $4,982,687 x 6.8% = $339,037
  • Year 5 dividend = $5,287,082 x 6.8% = $359,752

To calculate the total value of shares owned by each investor, we can multiply the number of shares by the share value:

  • Year 3 total share value = 1/share x number of shares = 1 x number of shares
  • Year 4 total share value = 1/share x number of shares x portfolio value = number of shares x $1.245
  • Year 5 total share value = 1/share x number of shares x portfolio value = number of shares x $1.323

Putting it all together, we can create the following table to show the shareholder dividend and total share value projections:
Year Portfolio Value Dividend Total Share Value
3 $4,696,784 $319,055 1 x number of shares
4 $4,982,687 $339,037 1.245 x number of shares
5 $5,287,082 $359,752 1.323 x number of shares

Note that the total share value projections will depend on the number of shares owned by each investor, which will vary based on their individual investment amount.

  • $50,000, they would own:
  • 50,000 / 1 = 50,000 shares

Using the projections from the previous answer, the total share value for this investor would be:

  • Year 3 total share value = 1 x 50,000 = $50,000
  • Year 4 total share value = 1.245 x 50,000 = $62,250
  • Year 5 total share value = 1.323 x 50,000 = $66,150

To calculate the shareholder dividend for this investor:

  • Year 3 dividend = $319,055 x (50,000 / 4,000,000) = $3,988.19
  • Year 4 dividend = $339,037 x (50,000 / 4,000,000) = $4,237.96
  • Year 5 dividend = $359,752 x (50,000 / 4,000,000) = $4,497.87

So, after 5 years, this investor's total share value would be $66,150, and they would have received a total dividend of $12,724.02.

Assuming an investor invested $350,000, we can calculate the number of shares they own:

  • Number of shares = Investment amount / Share price
  • Number of shares = $350,000 / $1/share = 350,000 shares

Using the portfolio value projections from the scenario above, we can calculate the total share value for this investor:

  • Year 3 total share value = 1 x 350,000 = $350,000
  • Year 4 total share value = 1.245 x 350,000 = $435,750
  • Year 5 total share value = 1.323 x 350,000 = $463,050

To calculate the dividend paid to this investor, we can use the dividend percentage from the scenario above:

  • Year 3 dividend = $319,055 x (350,000 / 4,000,000) = $27,846
  • Year 4 dividend = $339,037 x (350,000 / 4,000,000) = $29,676
  • Year 5 dividend = $359,752 x (350,000 / 4,000,000) = $31,253

Therefore, the total return for this investor would be the sum of the dividend paid and the total share value:

  • Year 3 total return = $350,000 + $27,846 = $377,846
  • Year 4 total return = $435,750 + $29,676 = $465,426
  • Year 5 total return = $463,050 + $31,253 = $494,303

Note that these projections are based on the assumptions made in the scenario above and do not take into account any additional factors or market fluctuations that may impact the actual return on investment.