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

And that's what these brands did.

And that's my dad found that.

How the main window is divided.

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

You'll get your cut.

He is alive to his own interests.

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.

So what they do is they just take your earnings number and you divide by the number of shares.

Minus 500,000.

He is alive to his own interests.

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

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.

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

We shared the benefit together.

They allotted the profits fairly.

He claimed his share of the profits.

Lookin' out for number one.

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.

Go ahead, eat.

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

We shared the profit among us all.

The loan bears an 8 interest.

He acted in his own interest.

I went shares with my cousin in the profits.

They acquire a library of intellectual property rights, then litigate to earn profits.

Our interests clash with theirs.

You should try that out with other examples.

You send men to slaughter for your own gain.

But if we use this non trivial Divide and Conquer approach, or non obvious approach, we'll get a, as we'll see, a much better running time than this quadratic dependence on the input.

Kill the goose that lays the golden eggs.

The taxes will be 153,000.

I'm not a charity commissioner.

A benefit to both our worlds.

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

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.

He is acting on his own behalf.

He always puts himself first.

But in this case, you literally just take the price of the stock and you divide it by the earnings per share.

So that's a nice thing to keep in the back of your mind, this return on asset concept, and it's very closely tied to operating profits and the actual assets of a firm.

FDlC insured.

The rewards would be... enormous.