Go ahead, eat.

A lot of times in the popular press.

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.

We study again our die. You observe the following sequence 1, 2, 3, 2.

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.

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.

Kill the goose that lays the golden eggs.

W 0, where 0 is your iteration number, and then you up with it iteratively.

A benefit to both our worlds.

I'll just abbreviate that as Nl.

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

And that's my dad found that.

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Supposed suicide.

And that's what these brands did.

FDlC insured.

The rewards would be... enormous.

We find that along the main diagonal our uncertainty has shrunk substantially.

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.

And let's say, assume if I inherited this million dollars, I didn't finance it.

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

I will now teach you about estimators.

This will be difficult.

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.

I just want to tell you what you've learned, because you did amazingly well.

This is 350,000 of net income.

Why make this thing?

All the profits go toward Phillip's hospital bills.

CA Yes.

The taxes will be 153,000.

I'm not a charity commissioner.

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

It's also important to think about what the benefit is.

So now look at the different lens.

Peter The greatest benefit to all.

And other sources, namely Wikipedia, will tell you that it is actually so this is one definition of return on asset.

Instead of doing this present value calculation for everything, and there's so much error involved anyway, in terms of just estimating earnings, people just give a rule of thumb.

It's hours, people per hour.