So now look at the different lens.

We know how much it takes to build our product.

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

That's 0.35 per share of EPS.

Company is 10.

The reason this is happening boils down, in my mind, to one basic problem, which is our inability to perceive the difference between public benefits and private profits.

They allotted the profits fairly.

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.

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

They need to understand the external environment and they need to come in.

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

The rise in house prices enabled him to sell his house at a big profit.

Now what's our mantra of this day and age I wonder?

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 at least it'll give you a sense of how revenues, gross profit, operating profit, pre tax income and net income really are different.

And if you know the present value then it's very easy to understand the net present value and the discounted cash flow and the internal rate of return and we'll eventually learn all of those things.

The copyright industry is digging a grave for the internet.

Also, in the interest of security and public safety...

Minus 500,000.

Our profit, once again, is 30,000.

Anyway, I want to leave you there.

So let's think about the Price to Earnings ratio of the company in question, this widget case study, I guess you could call it, that we've been dealing with.

These bonds have some future economic value.

This is what the owners of the company get before they pay the government.

(Laughter) But I know it's the bottom line, or one's perception of it, that motivates people in the end.

If they start to abuse their power, serving the interests of a selected few, instead of the common interest...

But here you see it means very, very different things.

And I wondered who was doing these kinds of films today.

She may yet be of some use to us.

This is really important to pay attention to, because so many people say, oh, a company made this much.

I'll just abbreviate that as Nl.

So let me switch colors just to ease the monotony.

A more human economy with another face and also with another name, with another proposal, with other values.

Go ahead, eat.

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

And so you can already imagine that both EBlT and the way I defined it initially, operating profit divided by assets.

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

Let no one appropriate a common benefit.

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

You say, what's the probability of being caught?

Our interests clash with theirs.

You said yourself, I have use for her.

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

We must always consider the public interest.

I wonder if it's worth it.