Tangible problems.

Something tangible?

This is the book value.

Depreciation is tangible.

Remember, there's a difference between book value and market value.

The book is of great value.

This book has a certain value.

Whenever you hear things like book value, and I've done a couple of videos on book value versus market value, but the book value is essentially what you have on your accounting books.

The value of this book has been halved.

This is the book value for a share.

So let's actually recalculate our new book value.

And book equity per share, or the book value per share of 6.00.

So we lost 1 billion of our book value.

What is the new book value of the shares?

There's something tangible about the whole thing.

The tangible is so much easier to see, the tangible is something you can access in your mind.

This book is of great value to students of science.

So this is 3.02 per share book value per share.

Because the book value of its equity is 5 million.

So let's see, the book value per share is what?

So I'm willing to pay a premium to their book value.

Because we know that the book value per share is 5.

And my idea was to make the space tangible.

That's the situation where the market price is above the book value.

And that tells you that the book value per share is 4.

So the book value of the new shares is 20 per share.

In our case, the book value of the equity was 5 million.

But in this case our market cap is below our book value.

And now notice something here, the book value of this residential mortgage backed security, at least what this bank management says the book value is, is 4 billion.

Let's say that the market value we talked before that the book value per share of this company is 5.

They were prepared for scars, disfigurements, tangible horrors, but nothing!

Equity is what's left over. So let's say this is all book value.

So that's why the book value of the equity is now 2 billion.

In this case, the company's trading at a discount to its book value.

It's going to be the book value, 2 billion, divided by 500 million.

The water has an ability to make the city negotiable, tangible.

In the last several videos we talked about the difference between the book value and the market value of a company's equity.

There's two notions, there's your book value of equity, and that's the value of the equity that comes out of your balance sheet.

But that's only the tangible side of the matter, of the Plasma.

JN It's more tangible than world peace, and it's certainly more immediate.

And just to make all of this a little bit more tangible,

Notice, the book value of my equity, well it might have changed a little bit.

And now the book value of our equity is now going to be 2 billion.

Is it shareholder value, shareholder value, shareholder value ?

Maybe, if this were Goldman Sachs' balance sheet, maybe its book value per share is 6.00.