Return on capital | Finance & Capital Markets | Khan Academy

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  • Опубликовано: 29 авг 2007
  • Courses on Khan Academy are always 100% free. Start practicing-and saving your progress-now:
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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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Комментарии • 42

  • @srichin1234
    @srichin1234 15 лет назад +8

    thanks Sal!!
    you have a gift of teaching and making concepts simpler.

  • @thereisnospoon9059
    @thereisnospoon9059 8 лет назад +4

    @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!

    • @peaceofmind1528
      @peaceofmind1528 6 лет назад +1

      There is no spoon
      Thanks .Do watch my videos

  • @jacobhernandez4347
    @jacobhernandez4347 3 года назад +1

    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.

  • @wakeupcaller6648
    @wakeupcaller6648 3 года назад

    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

  • @petepittsburgh
    @petepittsburgh 14 лет назад +11

    7:40 He was going to write COC, but thought twice about it.

  • @paulceltics
    @paulceltics 13 лет назад

    very nice. didnt think about that

  • @chrischika7026
    @chrischika7026 3 года назад

    thanks

  • @mannypigg6651
    @mannypigg6651 11 лет назад

    You have to also apply this concept to investing in new machinery/technology

  • @lizardlizardslizardman
    @lizardlizardslizardman 7 лет назад +1

    Thanks for the video it was very helpful :)

    • @peaceofmind1528
      @peaceofmind1528 6 лет назад +1

      Dragon Fairy Guild
      You are most welcome.I will prepare new video s only for u

  • @kriti8463
    @kriti8463 4 года назад

    Superb sir

  • @wisdommulamula8499
    @wisdommulamula8499 2 года назад

    Still helpful

  • @tanishpanjwani3117
    @tanishpanjwani3117 Год назад

    Sal, mind blown.

  • @timbroders7473
    @timbroders7473 11 лет назад +7

    Dang Sal, if you saw what was happening with the housing market in 2007, did you short the housing market big time?

  • @timmy101able
    @timmy101able 2 года назад

    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??

  • @michaelpisciarino5348
    @michaelpisciarino5348 5 лет назад

    Return on Capital
    0:59 cash you get/year
    cash you put in

  • @adijo123
    @adijo123 12 лет назад +4

    Even though ROC > Cost of capital, we didn't consider the implicit opportunity costs. That should be considered as well, right?

  • @helibabes66
    @helibabes66 8 лет назад +18

    A small loan of a million dollars

    • @thatsrich944
      @thatsrich944 6 лет назад +1

      ^^^ 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.

    • @KobeSamy
      @KobeSamy 4 года назад

      LMAO

  • @AleXander-eo3iz
    @AleXander-eo3iz 3 года назад

    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%.

  • @Stimulus29
    @Stimulus29 15 лет назад +1

    is this the same as capital budgeting

  • @hcp0scratch
    @hcp0scratch 3 года назад

    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.

  • @sebastianaminoff9703
    @sebastianaminoff9703 5 лет назад +3

    Who came here from Capital in the 21st Century

    • @georgeK03
      @georgeK03 3 года назад

      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

  • @MohammedAli-cw7wb
    @MohammedAli-cw7wb 11 лет назад +1

    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...

    • @joditot
      @joditot 7 лет назад +1

      Mohammed Ali you can always sell the business for 1 mil, idiot

    • @thatsrich944
      @thatsrich944 6 лет назад +1

      Good luck selling a million dollar business that only cashflows 3% a year, lmao!

    • @anthonysanville2841
      @anthonysanville2841 4 года назад

      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

  • @allgoo1964
    @allgoo1964 5 лет назад +1

    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?

  • @michaelrosche
    @michaelrosche 11 лет назад

    lol

  • @jerkster9114
    @jerkster9114 8 лет назад +2

    Thanks for the vid but having to wait for you to write everything is really a waste of time.

  • @tbr2685
    @tbr2685 6 лет назад

    plz sir, ur English is not clear. plz speak slowly, so that, we can understand

  • @hamzainusa6816
    @hamzainusa6816 Год назад +1

    LOATEDCYBER IS A VERY NICE GUY FOR HELPING PEOPLE GET BACK THEIR MONEY AND I WILL NEVER STOP TELLING PEOPLE ABOUT HIM AND HIS SERVICE............