Profitable.

Financial

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

In a future exercise we'll actually use this type of spreadsheet as an input into other models.

So a plus b have to be equal to 50.

There is the United States government.

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

Personal Finance Manager

wxBanker Finance Manager

Financial Functions

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

So notice.

Invest financial assistance, but also management assistance.

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

It's the same plot.

And when people talk about earnings of a company, this is what they're talking about.

Maybe Abby made 50 and Ben earned 0.

And we can eyeball it right here.

Your Ahole brotherinlaw took all my money.

GnuCash Finance Management

Financial Functions

They can buy treasuries from either two sources.

The reason why you are willing to pay a higher Price to

And what's left over for the equity?

So let me switch colors just to ease the monotony.

And they were male and female 18 30 and they were casual fans.

It's just 10 because one, this is a nice round number.

Treasury bond if it's a longer duration.

What do they do?

Everything on this line would be a valid combination of

So now we add an interesting line.

But I just want to give you the gist of what's happening.

We are assuming a very simple world, were the is no taxes, we have no debt, we have no intrest or things

A lightweight personal finance manager

Those are internal financial records.

Abby's and Ben's earnings given only this first constraint.

But today we re going to be talking about revenue streams.

Company A made 1 per share. 1 of EPS.

Abby earned 10 more than Ben.

And that's because they have the same exact asset.

Let's compare EBlT to operating profit.

And why don't you like them as much?

So the price would be 100.

Another type of revenue model is licensing.

It's time to monetise the thing.