Do Low Interest Rates Ensure High Asset Prices?

But anyway, the whole point of this video is, is when you have these asset bubbles, like in real estate, and you have this downplaying of risk, and this psychology that an asset class can only go up.

So what is the post money valuation?

Or, another way to think about it is the cost of production.

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

They want to encourage high volume purchases, and so they have stepped pricing that is oriented to create volume.

It turns out we made this pretty easy.

I could actually price on specific customer segments or on features I know they need.

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

What we have is one thing and what we are is quite another.

So let's call that market equity.

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

So those are the two side effects of high utilization.

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.

Price to Earnings, all else equal and that's a big thing all else equal, the lower the Price to Earnings, you're paying less for something.

Well I would have 50,000 left over.

He has no claim to the property.

Price

Mass production reduced the price of many goods.

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

levels of debt, will probably lose some money.

Then auctions like eBay are another example of dynamic pricing.

So its assets.

Now, it's worth 250,000.

That assets, A for assets, is equal to

It does this in a couple of ways chasing productivity, which drives down prices and encourages us to buy more stuff.

That the market just because of how this guy has capitalized his company if they just apprised a superficial price to earnings of 10 to both companies, it's willing to say that this asset is worth 279,000, and this asset's only worth 210,000, even though they're identical assets!

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)

They just have it around.

The county took a tax assessment of this property last month.

Malibu Equity and Investments.

Par value

Redemption

Present value

Present values

Future value

Dr. Price?

Wenneck, Price, Garner.

A lot of hurdles.

Even though there's lots of bad things about you, there are still some good things.

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

What I want to do here is focus on valuation and see whether the price to earnings ratio holds up to scrutiny in this situation, where you have an identical asset but very different capital structures.

I don't want to draw this box.