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

Company is 10.

And that's my dad found that.

The assets are generating this.

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

They obtained a yield of 8 percent on their investment.

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.

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.?

I mean, these are state assets.

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

This new investment will multiply our profit.

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

She benefited from the sound investment.

So this is the operating profit. This is the money that just comes out of the asset itself.

He acted in his own interest.

People do not enslave people to be mean to them.

We're coming out today from Trinidad and Tobago, a resource rich, small Caribbean country, and in the early 1970s we had a massive increase in the country's wealth, and that increase was caused by the increase in world oil prices.

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

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're generating the operating profit, and that's a very important thing to realize in the future when we talk about return on assets.

Right? It can't be networked. It can't be integrated.

In return on equity, the numerator is the net income that we got, so it's 350,000.

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

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.

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

To go to war, to free people from an outside aggressor, is noble

Anyway, I want to leave you there.

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

Help me fight for environmental and economic justice.

Now we can do another notion, and that's return on equity.

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.

Do Low Interest Rates Ensure High Asset Prices?

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

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

Kill the goose that lays the golden eggs.

He is acting on his own behalf.

You should work in the interests of humanity.

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So, it was not necessarily a bad thing.

They just have it around.

And so their operating profit, the amount of pre tax income, but you know, we're not considering financing either, so this is their operating profit or their EBlT.

And this is the profit from the operations of the company, or you could say from the assets or from the business or from the enterprise of the company.

Money lenders are enjoying a profitable period.

I loved my new found freedom.

Sloan began manufacturing targets on his own for profit years ago.