The return on the investment will be high.

So basically Republicans who make more than 250,000 dollars a year don't want to be taxed.

And why don't you like them as much?

It's the same plot.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

Profitable.

So help us go from this to this.

The investment now yields him 6 .

So a plus b have to be equal to 50.

So let's look at them over the course of one year.

So notice.

Invest financial assistance, but also management assistance.

What if the bake sale only netted 71 dollars for charity because it made no investment in its scale and the professional fundraising enterprise netted 71 million dollars because it did?

Maybe Abby made 50 and Ben earned 0.

And we can eyeball it right here.

Because when someone says earnings, are those the earnings last year?

The reason why you are willing to pay a higher Price to

And what's left over for the equity?

So let me switch colors just to ease the monotony.

And they were male and female 18 30 and they were casual fans.

Because to some degree, rental is kind of the earnings on a home.

So the amount that this number grows by, the amount that our equity grows by, is earnings.

And how they were going to create demand was through search ads, social media, stadium promotions.

An investors' group is attempting a leveraged buy out of the firm.

This was the earnings of the company last year, or the last 12 months.

The earnings I just said, this is actually what happened to the company.

Everything on this line would be a valid combination of

So now we add an interesting line.

In this example that I did in the previous video, it was the pre tax return on asset.

Corporate profits are quite high in fact, if you include bank profits, they're higher than they've ever been.

Abby earned 10 more than Ben.

And that's because they have the same exact asset.

Let's compare EBlT to operating profit.

So the price would be 100.

Another type of revenue model is licensing.

It's time to monetise the thing.

If you remember from our earlier lectures, if you're an existing market, that's a different type of revenue curve than being in a new market.

We talked about the potential ways to charge

One of the interesting thing about costs is that in the old days costs and revenue, the minute you started your company, your investors said oh, we know how to track all this.

And the first one is that this whole idea about revenue stream, Steve, I get it.

And we add back the interest, at least in this example, we get to an operating profit number.

What does that tell us?

At the end of the month we count your clicks

This is Earnings Per Share, not total earnings.

It's just 10 because one, this is a nice round number.