I'll just abbreviate that as Nl.

The taxes will be 153,000.

I also want 100 of that.

I give the innocence of a son and all my prayers

That's why we say it compounds.

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

Let's say they have no interest expense.

Before Interest and Taxes.

So just as a review, let's say I'm running some type of a bank and I tell you that I am offering 10 interest that compounds annually.

This is 350,000 of net income.

This guy makes what is this?

My mortgage actually might be something like 4,000 a month.

Interest. Weekly.

So EBlT, I kind of view that it goes backwards.

So, for an extra 20 ...

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So 5 on 100,000 is 5,000 per year in interest.

And of course the difference is the money that he had to spend on tax.

I'll have to take a 750,000 mortgage.

Net profit comes to 10 million dollars every year.

This guy makes 21,000.

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Number of payments per year

I don't know what a good rate is, 6 ?

Well I'm paying 750,000 times 6 a year.

Yep, that's right.

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.

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Cover him, Ria.

Key on us.

Cover me.

So 110 plus now 11.

If our earnings are 350,000.

And then we could take this down.

Let me write that.

At the moment, however, this money was not nearly sufficient to permit the family to

That's... 65,625 with interest.

So that's what I'm paying for, arguably.