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.

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.

This is Earnings Per Share, not total earnings.

And why don't you like them as much?

So help us go from this to this.

It's the same plot.

The investment now yields him 6 .

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

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

But there was an underlying support.

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.

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

Company A made 1 per share. 1 of EPS.

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

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?

Profitable.

They obtained a yield of 8 percent on their investment.

And so this is our yield.

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.

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.

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

So a plus b have to be equal to 50.

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

She benefited from the sound investment.

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

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

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

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.

Help me fight for environmental and economic justice.

So the total assets were 5 billion in assets.

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.

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

So notice.

Invest financial assistance, but also management assistance.

This new investment will multiply our profit.

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

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?

Investment

Your finances,your investments,your bank accounts anything you have hidden,she'll find it.

Stock investments do not always yield profit.

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