Now you pay this guy 24 million.

And it's called DlP financing.

We're not doing a great job managing money.

This is also 1000.

It all comes out of the equity tranche.

The program, in a sense, is an example of behavioral finance on steroids how we could really use behavioral finance.

You're more senior than even the senior guys.

Well, anyway, let's continue with the compound interest before, because we need to be able to finance our cult.

A tranche is just a bucket, if you will, of the asset.

And this new loan is the most senior loan.

last year when he graduated.

This is in the area of politics, where pundits, the ClA, Ml6 always get it wrong.

So 300,000 shares, seven 7 .

Similarly we issued 300,000 shares at 1000 per share on the mezzanine tranche.

So a lot of times when you look at income statements for companies, if you go to Yahoo!

We know that to be able to come on the bandstand and play music is a blessing.

Let me wrap with two key messages.

Less than three percent of a very sophisticated audience.

So the assets essentially it becomes kind of the bankruptcy court takes over, and they hire some investments.

And I go to these parties, and I start explaining to people because it's very exciting.

And they think that means that they are so incredibly busy and productive, but the truth is they're not, because we, at the moment, have had brilliant leaders in business, in finance, in politics, making terrible decisions.

So we've got these challenges, and what Richard Thaler and I were always fascinated by take behavioral finance, make it behavioral finance on steroids or behavioral finance 2.0 or behavioral finance in action flip the challenges into solutions.

And, of course, at Kleiner we, kind of, apologize and say the second best way is to finance it.

So out of the 100 million every year, 24 million is going to go to these guys, 21 million is going to go to these guys, and then whatever's left over is going to go to the equity tranche.

So in this situation what we did is we raised out of the 1 billion we needed 400 million from the senior tranche, 300 million from the mezzanine tranche, and then 300 million from the equity tranche.

But you might be surprised to know that one of the careers that he encourages people to consider, if they have the right abilities and character, is to go into banking or finance.

So once again we have verified, by taking the present value of 110 in 2 years to today, that its present value if we assume a 5 discount rate.

And this is going to be part of a whole new series of presentations, because I think what's happening right now in the credit markets is pretty significant from, I guess, a personal finance point of view and just from a historic point of view.

And my question to you and this is a fundamental question of finance everything will build upon this is which one would you prefer? and this is guaranteed.

A senior just means, if this entity were to lose money, these people get their money back first.

And since I've already gone down this compound interest track, let's just keep going so that I can put these videos in both my mathematics and my finance playlists.

So with that in mind, I decided to take a little bit of a hiatus from the core math and physics videos, and actually do some accounting and finance videos.

This guy is still going to get 24 million, this guy is still going to get 21 million, but now this guy is going to get 45 million.