So that's fine.

It's very simple. It's cost plus markup.

I love Lego Mindstorm, is which a wonderful way to experiment with these things.

Because we know that the book value per share is 5.

So we have to be careful.

It's not about low cost.

It's the best price that someone's willing to give you for something.

So I'll pay 2 per share, which is a little bit of premium over the market value at the time, which was 1.

So let's call that market equity.

So the first one I'd like to parce is the idea of market value.

Our price is considerably higher than the current market price.

I'm just making up numbers.

It has been made possible, by the way, for certain other different reasons.

So, I went online again and I looked at what an optimal sensor would look like.

So maybe I have a a billion of these CDOs.

Anyway, fair enough.

He sells that share and he gets 100 for it.

I think that's what I wanted a write here, market value of equity.

And these are the same people now, they're very adamant, that says, oh don't believe the market price.

And this is very relevant to what's going on in the world today.

So 5 million divided by 1 million is 5.

I'm going to make money that I otherwise wouldn't have made.

Look, Pat, First Rate got that contract fair and square.

And this calculation, this multiplication of market price per share times the number of shares this is called the market cap

And with that, there's gonna be some electricity and stuff, we won't count all of it..you can produce some cotton. Just the plant cotton. Some raw cotton.

And that tells you that the book value per share is 4.

Here, what multiple are we paying?

A buyers' market is a market in which goods are plentiful, buyers have a wide range of choices, and prices are low.

let's say that they are traded in some market.

So I'm willing to give you 1 billion for those CDOs.

The price of admission.

Because you're getting the same earnings for a lower price.

So using FrontlineSMS they were able to group people into different categories and these people included farmers, who might want to know the coffee prices in different markets,

With this price, your product would not be competitive in the Japanese market.

The market drop has cleaned me out.

But let's parcel it a little bit more, cause these terms can be interesting.

And I'll do a bunch of videos on margins in the future.

And what we'll do in future videos is we'll actually explore situations in which that does happen.

So what's leftover?

Traders seeking Fairtrade certification must pay producers a price that covers the costs of sustainable production and provides a living wage. For example, the minimum price for coffee is 1.26 per pound, no matter how low the market price may fall.

So I don't buy it on two counts.

I'm going to talk about two stories today.

They're arguing that the few people who transacted did it out of desperation.

And then kind of the third common errors, my price hast to be less than my competitor's price.

And both of them satisfy the law of demand if the price is really high the quantity demanded is going to be really low for the laptop and so it might be right over there and if the price is low the quantity demanded is going to increase.