Company C is trading at 100.

So a plus b have to be equal to 50.

Because during conflict economic policy typically deteriorates.

Profitable.

They're paying 400 the next month

So let me draw a yield curve right over here.

So maybe instead of 5 , it goes down to 4 .

Company A made 1 per share. 1 of EPS.

Invest financial assistance, but also management assistance.

And we can eyeball it right here.

Maybe Abby made 50 and Ben earned 0.

The management tended to be too concerned about short term improvement of the bottom line to have any long term design for the future.

So this right here is a Treasury bond or bill.

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

And what's left over for the equity?

Corporate earnings in the first quarter improved sharply.

Corporate earnings for the first quarter were disappointing.

Net income is also earnings.

The earnings I just said, this is actually what happened to the company.

So let's look at them over the course of one year.

So notice.

Everything on this line would be a valid combination of

But it might be to explicitly control the yield curve further out, so that the borrowing cost for longer debt goes down, so that the yield curve looks something like that.

Abby earned 10 more than Ben.

And why don't you like them as much?

So the price would be 100.

Another type of revenue model is licensing.

Short Periodic Table

Come back 15 years later.

The reason why you are willing to pay a higher Price to

So let me switch colors just to ease the monotony.

And they were male and female 18 30 and they were casual fans.

And the first one is that this whole idea about revenue stream, Steve, I get it.

What does that tell us?

It's just a faster way of saying

So now we add an interesting line.

It won't be for long. It's a shortterm placement.

This is really important to pay attention to, because so many people say, oh, a company made this much.

And we add back the interest, at least in this example, we get to an operating profit number.

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

So first, a little bit of definitions.

And so I'm left with net income of 350,000.

But I just want to give you the gist of what's happening.

They're going to make 0.35 in 2009 as well.

Loss of shortterm memory,