The investment now yields him 6 .

The return on the investment will be high.

So basically Republicans who make more than 250,000 dollars a year don't want to be taxed.

And why don't you like them as much?

So help us go from this to this.

It's the same plot.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

You've been out talking to customers.

The stories that we want to know, and the stories that do exist about positive tales.

EBlT in this case would be the operating profit plus this investment income.

What if the bake sale only netted 71 dollars for charity because it made no investment in its scale and the professional fundraising enterprise netted 71 million dollars because it did?

Corporate profits are quite high in fact, if you include bank profits, they're higher than they've ever been.

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.

They obtained a yield of 8 percent on their investment.

One of the interesting thing about costs is that in the old days costs and revenue, the minute you started your company, your investors said oh, we know how to track all this.

So a plus b have to be equal to 50.

At the federal impound lot downtown,

Once you start a company, hopefully you generate earnings, and that'll also generate cash or capital that you can reinvest in the business.

Today, there are 2.3 million.

So the amount that this number grows by, the amount that our equity grows by, is earnings.

Profitable.

Now, the angel investor, if we value this at 5 million, he'll give us 5 million more.

This was the earnings of the company last year, or the last 12 months.

Because to some degree, rental is kind of the earnings on a home.

She benefited from the sound investment.

And as a result of the association,

Help me fight for environmental and economic justice.

If you remember from our earlier lectures, if you're an existing market, that's a different type of revenue curve than being in a new market.

The amount of money you get.

Invest financial assistance, but also management assistance.

Here are photographs of two young men.

And we can eyeball it right here.

Yes, it's an enterprise.

Maybe Abby made 50 and Ben earned 0.

Your filthy drug money has been transformed into nice, clean, taxable income, brought to you by a savvy investment in a thriving business.

And so, using patient capital money that they could raise early on, that actually got below market returns and was willing to go the long haul and be combined with management assistance, strategic assistance they've now created a company where they purchase from 7,500 farmers.

And if you know the present value then it's very easy to understand the net present value and the discounted cash flow and the internal rate of return and we'll eventually learn all of those things.

An investors' group is attempting a leveraged buy out of the firm.

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 new investment will multiply our profit.

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

In this example that I did in the previous video, it was the pre tax return on asset.

Because when someone says earnings, are those the earnings last year?

And what's left over for the equity?

We need a bigger conversation, an international dialogue.