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.

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

levels of debt, will probably lose some money.

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

Now, it's worth 250,000.

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

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)

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

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

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

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

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

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

So I'll write that up here.

So I asked the Minister over dinner,

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.

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

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

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.

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

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.

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

I know that look like a very strange word.

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

It's worth 5 million.

Our liabilities are still 3 billion.

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

In which case they have zero equity.

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

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

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

No industry. No capital. Money is worthless.

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

Bank A is going to go into bankruptcy.

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

Now, each of these shares, well the 1,000 is called the NAV, or the net asset value,

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.

5,000 CHF for Willi and for Hans.

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

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.

Do Low Interest Rates Ensure High Asset Prices?