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?

The investment now yields him 6 .

So help us go from this to this.

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.

EBlT in this case would be the operating profit plus this investment income.

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?

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

But based on the model that we just constructed, I think the real return we're going to get on this mortgage backed security is 9 .

They obtained a yield of 8 percent on their investment.

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.

So a plus b have to be equal to 50.

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

Profitable.

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

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

She benefited from the sound investment.

Help me fight for environmental and economic justice.

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.

The amount of money you get.

They are growing because they have high levels of skills.

Invest financial assistance, but also management assistance.

And we can eyeball it right here.

Maybe Abby made 50 and Ben earned 0.

And so, using patient capital money that they could raise early on, that actually got below market returns and was willing to go the long haul and be combined with management assistance, strategic assistance they've now created a company where they purchase from 7,500 farmers.

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

This new investment will multiply our profit.

But anyway, here I want to figure out what is my return on asset?

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

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

And what's left over for the equity?

Sometimes we're profitable. Sometimes we're not.

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

Because most of you compared the price of this Big Mac to the price you're used to paying.

Well Company A is more steady, so that's one reason.

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

So notice.

Everything on this line would be a valid combination of

So that, maybe, is 20 of investment.

Peter Bradford says

Investment

Your finances,your investments,your bank accounts anything you have hidden,she'll find it.

Now, who are they accountable to?