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.

And why don't you like them as much?

It's the same plot.

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.

So help us go from this to this.

The amount of money you get.

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

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

The investment now yields him 6 .

Malibu Equity and Investments.

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

Investment

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.

Well their intention was to take these home equity loans and put that money to work, invest it in some way.

Malibu Equity and Investments. Roger Van Zant.

They obtained a yield of 8 percent on their investment.

In return on equity, the numerator is the net income that we got, so it's 350,000.

Mmhm. It's a real estate investment.

He valued what we already had at 5 million dollars.

They're valuing these assets at 1 million.

Investing in professional development is not a cost.

As investors flee

Investing.

Now, who are they accountable to?

Once you start a company, hopefully you generate earnings, and that'll also generate cash or capital that you can reinvest in the business.

And that seems like a pretty reasonable proposition.

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

And I'll show you why that matters in a second.

Big investors.

Investment in what?

She benefited from the sound investment.

That assets, A for assets, is equal to

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

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?

Help me fight for environmental and economic justice.

Let me put that.

Just Manic Enough.

Consider it a capital investment.

I want investment.

And so with patient capital from Acumen and other organizations,

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.

But we'll do a whole playlist on that.

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.

This new investment will multiply our profit.