That's 0.35 per share of EPS.

We know how much it takes to build our product.

Company is 10.

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.

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

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

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.

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

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.

Anyway, I want to leave you there.

Our profit, once again, is 30,000.

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.

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

These bonds have some future economic value.

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

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

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

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.

Our interests clash with theirs.

Minus 500,000.

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

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

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.

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

In France, a bus company is suing people for forming a carpool, right, because the fact that they have coordinated themselves to create cooperative value is depriving them of revenue.

Kill the goose that lays the golden eggs.

She may yet be of some use to us.

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

A benefit to both our worlds.

I'll just abbreviate that as Nl.

So let me switch colors just to ease the monotony.

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.

And that's my dad found that.

Not so in Italy.

You said yourself, I have use for her.

It's just a faster way of saying

And that's what these brands did.

FDlC insured.

The rewards would be... enormous.

So you've probably heard not only the term earnings, you've probably also heard the term earnings per share.

They buy more of your service and they tell more of their friends, which leads to more profit.