As a matter of fact, you did a pretty large catering.

So a plus b have to be equal to 50.

Profitable.

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?

Everything on this line would be a valid combination of

Let's compare EBlT to operating profit.

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

So notice.

Invest financial assistance, but also management assistance.

What does that tell us?

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

It's the same plot.

When? I said it's time to monetise the site.

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.

But I'm not recognizing the Revenue in the month that I got it.

The next thing is revenue streams.

Quick example from the corporate world.

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.

And so I'm left with net income of 350,000.

This is really important to pay attention to, because so many people say, oh, a company made this much.

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

So now we add an interesting line.

We learned that in our first video.

So in 2013 you'll be making 16.

We are assuming a very simple world, were the is no taxes, we have no debt, we have no intrest or things

A company is a business organization with sales, a product, or service in exchange for revenue and profit.

Abby earned 10 more than Ben.

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

And why don't you like them as much?

So the price would be 100.

Another type of revenue model is licensing.

It's time to monetise the thing.

So let's say the short term overnight borrowing for,

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

Are you with me?

At the end of the month we count your clicks

This is Earnings Per Share, not total earnings.

How is it that you make money?

It's just a faster way of saying