So I'll write that up here.

I know that look like a very strange word.

let me give you that piece of terminology, it just means net asset value.

So what is the value per share?

And there's only 10 shares. So they're valuing the assets at 500,000. And this is of course the market value of the assets.

So its assets.

That assets, A for assets, is equal to

So here investors are valuing this company at 1 times a million shares.

levels of debt, will probably lose some money.

Malibu Equity and Investments.

Now, it's worth 250,000.

So, remember, assets are equal to liabilites plus shareholder's equity, so if all of a sudden the market value of the equity, the market capitalization, for Ben's shoe company is 215,000... (That is the equity part right over here)

I don't want to draw this box.

And rich, eh?

I'll do that in yellow.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

And then at the end of 2008, beginning of 2009, our balance sheet under the assets, the machine, if they gave us that

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

liabilities plus equity.

We're willing to say that the market value of your equity is 210,000.

We could do a series of videos on that.

'Mr Darcy', as he calls himself, is not worth our concern, though he may be the richest man in Derbyshire.

And what I wrote here is, it has 4 billion of liabilities.

He is a man of wealth.

He's a wealthy man.

Or across the street from each other.

So the total assets were 5 billion in assets.

You'd have to give up 93 of your net worth.

In a world without leverage so if I didn't have all this

So this is just another visual representation that

It doesn't sound like we borrowed money or anything.

Remember liabilities plus equities are equal to assets.

And if this little fraction right here is 189,000, then it implies what about this asset?

And it's essentially, what is the market saying the equity is worth?

These should be at equal size, and now the NAV per share is going to be 1,800 divided by 10, or 180.

So going back to what we were talking about, what is the post money valuation?

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

But let's say its assets are worth 1 million.

All of the assets needed to start the firm, the pizzeria.

Or they just have a super flush bank account.

Remember, every time it'd issue a loan, like for right here, it issued a 100 gold piece equivalent loan to D and instead of giving D 100 gold pieces from, say, right here, it just created a checking account for D, which later D paid to A and that's why it's labeled A right here. Let me relabel another thing because the gold is a different color just so you see the gold.

But let's just kind of think about a generic balance sheet for a bank.

So 225,000

I guess you could say non cash assets, right?