Return on capital | Finance & Capital Markets | Khan Academy
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- Опубліковано 29 сер 2007
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Introduction to return on capital and cost of capital. Using these concepts to decide where to invest. Created by Sal Khan.
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Finance and capital markets on Khan Academy: When are you using capital to create more things (investment) vs. for consumption (we all need to consume a bit to be happy). When you do invest, how do you compare risk to return? Can capital include human abilities? This tutorial hodge-podge covers it all.
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thanks Sal!!
you have a gift of teaching and making concepts simpler.
Hey, Sal! Your videos inspired me totally. Thank you for your kindness and goodness. You are a good lad!
Tell me, how or where can I get them all? I m super interested in studying your advices!! Please, let me know
@Khan Academy Damn I love you man. I watched many of your maths/engineering tutorials and they were very useful, and now I am 1 day from my engineering management exam, the notes are making little sense and I couldn't focus at all, but you make it so easy to understand. I have hopes of passing my exam now! 24h left, with these tutorials, plenty!
There is no spoon
Thanks .Do watch my videos
thanks for this , ROC can give you incites on the company and its subsidiaries and looking at the incentives. Common sense isn't so common. Thank you for your time, the video is beyond what I was looking for.
7:40 He was going to write COC, but thought twice about it.
very nice. didnt think about that
You have to also apply this concept to investing in new machinery/technology
thanks
Sal, mind blown.
Superb sir
Even though ROC > Cost of capital, we didn't consider the implicit opportunity costs. That should be considered as well, right?
Thanks for the video it was very helpful :)
Dragon Fairy Guild
You are most welcome.I will prepare new video s only for u
So would A ROC in a way be protective against any stock price drops? If the price of the stock drops and you later sell the. That’s just less of the dividends that you were paid and later went as ROC that you must pay back taxes on??
Dang Sal, if you saw what was happening with the housing market in 2007, did you short the housing market big time?
Still helpful
Return on Capital
0:59 cash you get/year
cash you put in
A small loan of a million dollars
^^^ And that's the impoverished mindset. I can assure you the 1% aren't putting a million dollars into shitty deals that generate 3% annualized returns.
LMAO
So if ROC includes all the costs that it takes to run the business than shouldn't we include the interests as part of the cost? Either way a short way of calculating the worth of investment would be the ROC - interests. So 5%-2% = 3%. So the new ROC would be 3%.
Great learning site! One problem for me, however, is the excessive time it takes to write down your info. I feel you could give the same, well-structured teaching with less time. Perhaps this is the learning style you utilize, but I think you may be taking it a bit too far.
is this the same as capital budgeting
Oi are ya still alive!!?
Who came here from Capital in the 21st Century
Ayyyy i did im trying to read the book but im only 17 and know nothing about economics. But its at least its really interesting
but you still had to invest 1 mil to get that 30k each year, it would take more than 30 years to pay it off...
Mohammed Ali you can always sell the business for 1 mil, idiot
Good luck selling a million dollar business that only cashflows 3% a year, lmao!
That's Rich as years go on you begin paying off the principal which means the interest on the loan goes down as well. So yeah youre making 3% roc the first year re investing your profits which accelerate for more profit. The snowball effect
It sounds great on a paper and make sense on the calculation but where's the proof in the history?
What is this argument based on?
Has Sal Khan published any books on the subject?
You know, the arguments backed by the data like Picketty does?
Its only text book
@@Nickelectric its also from 07'
lol
Thanks for the vid but having to wait for you to write everything is really a waste of time.
plz sir, ur English is not clear. plz speak slowly, so that, we can understand
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