So what is the value per share?

And there's only 10 shares. So they're valuing the assets at 500,000. And this is of course the market value of the assets.

levels of debt, will probably lose some money.

Now, it's worth 250,000.

And it's essentially, what is the market saying the equity is worth?

let me give you that piece of terminology, it just means net asset value.

But the market value or assets is essentially, what is the market saying the assets are worth?

And then at the end of 2008, beginning of 2009, our balance sheet under the assets, the machine, if they gave us that

So, remember, assets are equal to liabilites plus shareholder's equity, so if all of a sudden the market value of the equity, the market capitalization, for Ben's shoe company is 215,000... (That is the equity part right over here)

So over here, let's say you did it right at the beginning of the year, the asset's worth 500,000.

We're willing to say that the market value of your equity is 210,000.

So the balance sheet is really trying to capture what your asset is worth at that point in time.

So I'll write that up here.

And so after that offering, well, our pre money valuation was 30 million and our post money is now 40 million.

And you take out the liabilities, this is what the assets are worth according to the accountants.

And we'll talk a little bit more about assets and enterprise value, and there's a little bit of a nuance there, but essentially the company itself.

It's what the market is willing to give for it.

And there's a whole methodology to how one would account for that.

I have factory tools worth 500,000, and then that cash will go away.

So here at the beginning of this year, the asset is worth 500,000.

When you take some of your assets and you get the value of the assets that you think they're worth and you pay off some liabilities, it doesn't change the value of your equity.

Our liabilities are still 3 billion.

And it's probably because they think that one of these things on the left hand side of the balance sheet, one of these assets, are worth less than what the bank says they're worth.

So I asked the Minister over dinner,

So going back to what we were talking about, what is the post money valuation?

Now, the asset's worth zero, but at the beginning of this year, you buy a new asset worth 500,000.

And if this little fraction right here is 189,000, then it implies what about this asset?

At the current value of his estate, the inheritance tax will be at least six million dollars.

The book value of the assets, or what the accountants within the company are saying the assets are worth.

In which case they have zero equity.

I said, let's say this company goes into bankruptcy.

Loan C is, just to make it interesting, loan C is... let's say it's for 3 billion.

So the first one I'd like to parce is the idea of market value.

The price of human beings across the last 4,000 years in today's money has averaged about 40,000 dollars.

In this case where you don't have debt, they're actually saying what is the asset worth?

And we'll introduce debt later, because that's another variable that a lot of people don't think about when they

I know that look like a very strange word.

Bank A is going to go into bankruptcy.

It's worth 5 million.

So it's a very different scenario depending on what our pre money valuation is.

And then our snapshot, or our balance sheet at the end of 2007, will have on its assets a patent that's now worth 3,000.

5,000 CHF for Willi and for Hans.

And I say, that's a horrible idea.

And of course the pre money valuation is just you just take the pre money valuation plus the amount of cash they're giving us.

Because remember, income statements are just telling you how do you get from one balance sheet to another.