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

This is Earnings Per Share, not total earnings.

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.

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

Company A made 1 per share. 1 of EPS.

And you're going to pay a lower Price to Earnings ratio if the company isn't growing.

And actually, this guy, even if the top line, even if the revenue grew the same and the operating profit grew the same, because of his leverage he would actually grow a

Profitable.

But if you look here, by giving the same price to earnings, because they're the same business.

So a plus b have to be equal to 50.

Sometime people just say EPS for this company in 2008 was, and in this case you take 350,000, your total earnings, divided by the total number of shares you have.

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

So notice.

Invest financial assistance, but also management assistance.

Secretary General.

Maybe Abby made 50 and Ben earned 0.

And we can eyeball it right here.

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

Fair enough.

And what's left over for the equity?

So let me switch colors just to ease the monotony.

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

But here you see it means very, very different things.

And that total revenue is the same thing as the total expenses plus the profit for that firm and that's the same as this one household's income.So let me write this down.The way we looked at the last thing,

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

Everything on this line would be a valid combination of

So now we add an interesting line.

And if you are an investor, you're probably going to want to do the last of the three.

Your excellencies,

UN Secretary General,

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

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.

Abby earned 10 more than Ben.

And that's because they have the same exact asset.

Let's compare EBlT to operating profit.

And why don't you like them as much?

So the price would be 100.

Another type of revenue model is licensing.

It's time to monetise the thing.

Our President's Council consists of the Vice Chancellor of Oxford, the President of NYU, the Rector of the Academy of Paris, another great institution, our Provost is from Columbia University, our Deans are from NYU, and we have many more.

And how they were going to create demand was through search ads, social media, stadium promotions.

I'm the Secretary of Defense of the United States of America.

If I do not earn anything on top, I would still have 1000 Euros total income.

We expect rapid growth of the utilities sector.

Are you with me?