Payable to the City of San Francisco.

To pay off his debt,

What's this, dear?

So we still have the same amount of debt.

But it's really a measure of the same thing.

liquidate it.

I owe these people that money is 700 and my equity is 300.

The government announced that they would pay their debts.

But this I just want to show you some data here.

All we did was, we paid the interest on the debt in this example.

You're not buying the stock from that company.

So if theshareholders are wiling to pay 21.50 share for Ben's stock, and there are 10,000 shares in Ben's company

But the important thing to realize is that these payments

And he owes this is his asset, and his liabilities is he owes one share of IBM to the broker.

So, remember, assets are equal to liabilites plus shareholder's equity, so if all of a sudden the market value of the equity, the market capitalization, for Ben's shoe company is 215,000... (That is the equity part right over here)

His debts amount to more than he can pay.

So it's a little bit more complicated than just saying, oh, look at that, they're giving a 6 coupon, which essentially means twice a year they're going to give me 3 of the value of my bond.

If someone doesn't pay the debt, then the insurance company will pay it for you.

Her debts amount to more than she can pay.

That has nothing to do with it.

Right?

The orange slice is what's discretionary.

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

What are my liabilities?

The money is to be applied to the debt.

He was bound to pay his father's debt.

You're still solvent.

They serviced the loans.

And they get paid first.

You would get 100 million.

This is the debt, or the liabilities.

Because that's essentially what a credit default swap is, it's insurance on debt.

It can now support 2 million.

Our equity is equal to 300 gold pieces.

My liabilities are this, you can view that as debt because

The debt servicing cost on bonds will take up major portion of the budget.

And the equity holders get wiped out, the old equity holders.

Because some of them have paid, and some of them are still paying.

And I kind of jumped the gun a little bit.

But unlike mortgages, a lot of corporate debt, they just pay the interest.

Payment

Pay up

But here, the Price to Earnings for 2009 then becomes let's see.

And two tickets to Brussels paid for with Langdon's credit card.

Well, we've all heard about what they are, I think, and we all know they're used quite a bit by people and companies who are trying to avoid paying their proper dues to society, also known as taxes.