That would have been the market value per share.

Let's say that the market value we talked before that the book value per share of this company is 5.

We said before any of this stuff on the top existed, the pre money valuation of just our idea was 5 million.

It's worth 5 million.

Our liabilities are still 3 billion.

And of course the pre money valuation is just you just take the pre money valuation plus the amount of cash they're giving us.

This is the book value for a share.

But the market value or assets is essentially, what is the market saying the assets are worth?

So it's a very different scenario depending on what our pre money valuation is.

The amount of money you get.

But this matters a lot, right?

If what we had before is worth 5 million and there were a million shares initially, then the pre money valuation

ledgers...?

We have 3 billion in loans.

So now it's getting interesting.

So that's fine.

We essentially sold them at 10 a share.

Then the number that pops out on the equity side, that is a book value of your equity.

This is the book value.

Investment

Malibu Equity and Investments.

So 107.84, or 107.84.

Well their intention was to take these home equity loans and put that money to work, invest it in some way.

Now, you might remember from previous videos that the book value of the assets in Ben's company are only 140,000! 20,000 of cash, 100,000 of inventory, 20,000 of... this is not equity, this is equipment I should call it.

And so after that offering, well, our pre money valuation was 30 million and our post money is now 40 million.

He valued what we already had at 5 million dollars.

So no matter what I do, between the pre money and the post money valuation, my per share value doesn't change any.

They're valuing these assets at 1 million.

Investing in professional development is not a cost.

As investors flee

Investing.

That's what we started off with.

But just for the sake of simplicity, I've just made all the banks in the situation where the book value of the

So the shareholders' equity, or you could almost say the book value of the equity of the company, is 5 million. 5 million equity.

So the combined assets, if you believe that this is worth 5 million, is now 10 million, right?

Malibu Equity and Investments. Roger Van Zant.

And I'll show you why that matters in a second.

Big investors.

Investment in what?

In the private sector, when you squeeze that kind of additional value out of a fixed cost investment, it's called a billion dollar company.

Now, who are they accountable to?

So going back to what we were talking about, what is the post money valuation?

So if we believe these numbers, if we believe the books, the book value of the shares is about 3.02 per share.

So each of those shares is one 500 millionth of this equity.

Whenever you hear things like book value, and I've done a couple of videos on book value versus market value, but the book value is essentially what you have on your accounting books.