And on the cash flow statement you express that saying

We have a very, very steady business.

I'll do that in yellow.

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.

Wait! But we spent that 60,000, especially in year 1

So the total assets were 5 billion in assets.

Japanese corporations are slashing their capital spending programs.

This was not a cash expense, so from our operations we had 50,000 dollars,

That has got to be stopped.

Without billions of dollars from the private sector

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.

Total occurrences

And so liabilities plus equity is equal to assets.

I spent 60,000 on Capital Expenditure sometimes it's property plant and equipment .

Total number occurrences

But there was an underlying support.

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

All hands, abandon ship!

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.

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

But if your fuel source is free, then the only thing that matters is the up front capital cost of the engine.

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

All hands to escape pods.

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

It should start to make a little bit of intuitive sense

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.

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

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

And so this is our yield.

liabilities plus equity.

The company was started with 100,000 in capital.

I still owe the almost 1.075 million.

Yes, put that aside.

We know there's a million shares.

In a world without leverage so if I didn't have all this

So this is just another visual representation that

less capital intensive that there's less money that's required

It doesn't sound like we borrowed money or anything.

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

Assets are always equal to liabilities plus equity.

The whole village came out to welcome him.

And here's the trick.

But let's say its assets are worth 1 million.