Company is 10.

And I think you already get the sense that the lower the

But when you lower the Price to Earnings you are increasing the Earnings to Price.

Anyway, I want to leave you there.

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

Or if we just wanted to round to the nearest penny, since we're talking about selling something, this optimal profit, this optimal profit, will happen at a selling price of 23 and 30, 23 and 33 cents.

Over here, this axis right here is going to be the selling price,

So you say, they both deserve a price to earnings of 10.

Anyway, going back to Price to Earnings, we calculated the

A benefit to both our worlds.

Maybe it goes to 2 in 2010.

The word arbitrage sounds very fancy, but it's actually a very simple idea.

This is 2009 estimates.

Obviously a 6 Price to Earnings of 20 times 2013 earnings isn't as good as a 6 Price to Earnings of 2010, because earnings in the future aren't worth as much as earnings today.

And B is expected to make 4 per share.

Why wouldn't I just pour all of my money?

We know how much it takes to build our product.

So something very interesting is happening.

Unconventional natural gas is controversial, as it needs high energy prices to be profitable.

You're making 10 , and that's just to connect the dots.

Why would someone ever keep their money in the bank at 2 or a Price to Earnings of 50, when they could have a Price to Earnings of 10 with Widgets Inc.?

So that's a little bit of a taste of why someone might realistically, in this case, pay a higher Price to Earnings for safety.

That was a bit of a diversion.

Which it seems like a really good deal, because now the

And let's say Company B made 5 per share. 5 EPS, Earnings Per Share.

We get 30 s squared plus 1400 s minus 16000.

It was 10.

So it has a Price to Earnings of 50.

And we're going to assume that these apples are completely identical apples.

Price to Earnings is 1.75 divided by 0.35, would now be a 5 Price to Earnings.

To figure out the cash from operations from actually how much cash the operations are producing.

So they both deserve at least a price to earnings of 10.

And the earnings on the bank account in that year were 200.

And the first one is that this whole idea about revenue stream, Steve, I get it.

Then auctions like eBay are another example of dynamic pricing.

Is it a license or subscription model?

But one of the things that we always tend to confuse is the difference between a revenue model and pricing.

In a system like the monetary system, a solution for aging can't help the species, because it will have a price and only people with power will have access to it.

You can only sell luck in an unequal society because you offer a life changing reward. The monetary system is based on profit leading indirectly to corruption, any game can also be corrupted.

One is, you could kind of flip this.

So archetypes really helped us understand our customers, they value prop, the revenue and some of our pricing tactics.

Price

Do Low Interest Rates Ensure High Asset Prices?

Our profit, once again, is 30,000.

Because if you're at full capacity, and we saw that in the last video, when it was just me,