I'll do that in yellow.

In the last video I talk about how both Ben's Shoes and Jason' shoes are fundamentally the same business but they have different capital structures.

But our total assets, or the market's perception of the total assets of the company, are essentially what it's willing to pay for the equity plus the liabilities, so the market is saying that Ben's assets, the assets in that company are worth 220,000.

The company bought shares in the venture.

So the total assets were 5 billion in assets.

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.

It should start to make a little bit of intuitive sense

The bank is going to be able to fulfill its promise.

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

I shouldn't have crossed it out, let me write it again. 4 billion, the 2.5 is what the market was saying.

And so to go from one point to the other, to go from 100 to 300,

And if this is worth 2.5 billion, then your total assets are what?

And so this is our yield.

So this box right here is GDP, so it's all the goods and services, essentially all the income, that we produce.

The company is open for equity participation by anybody.

In fact, it's often our own foreign policy decisions and trade policy decisions that actually fuel migration.

The basic income extends into the existing income, while the level of total income does not change.

Bless you, Mr. Victor.

They would have made 250,000, right?

I don't want to get a full denture.

I've had full dentures for two years.

But there was an underlying support.

Another way to think about it is, if the market is paying 12 million per share, what's the market cap of the company?

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

And we have these 4 billion of CDOs.

And, of course, when you have consumption touching up against you're fully utilized, that makes it even more an incentive to invest.

Admission charges aggregated 2500.

So I'm also solvent.

So right now in this world, my assets are what?

I'll draw it a little bit bigger.

So they did build some equity through housing appreciation, just the house didn't go from 100,000 to a 1,000,000, it went from 100,000 to 250,000.

And people, all of a sudden, just sitting on their house, ended up with a lot of equity.

Okay. I'm going to ask a few questions, and Google will respond.

We know there's a million shares.

They're the share of owner's equity and not of the asset also gives you a good sense of what market cap is

I'm not going to lend you money.

How much equity do they have?

And the asset in particular we're going to focus on is this 4 billion in residential CDOs right here.

And what is required is a combination of physical capital, institutional capital, human capital and security, of course, is critical, but so is information.

So he owns it outright so all of the 100,000 of asset value is actually his equity.

And on the cash flow statement you express that saying

And then on the equity side, because we have no liability, so in this case assets will be equal to equity.

But in the more equal societies, it rises to 60 or 65 percent.

like an equation, but it's assets is equal to liabilities plus equity.