Tell me what's really bothering you.

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

like an equation, but it's assets is equal to liabilities plus equity.

And what is required is a combination of physical capital, institutional capital, human capital and security, of course, is critical, but so is information.

It should start to make a little bit of intuitive sense

And then on the equity side, because we have no liability, so in this case assets will be equal to equity.

You're imagining things.

Wonder.

liabilities plus equity.

In a world without leverage so if I didn't have all this

So this is just another visual representation that

less capital intensive that there's less money that's required

It doesn't sound like we borrowed money or anything.

I have a serious problem.

But let's say its assets are worth 1 million.

Well, they lost, by entering into this transaction, essentially, they lost whatever equity they originally had in their house.

Capitalist country.

Japan is not abundant in natural resources.

We have a very, very steady business.

Not an easy one.

That boy's in trouble!

It made me sick not telling you.

What's biting you?

Whatever it is that's upsetting you.

Of course it bothers me.

The least important form of capital, in this project, is financial capital money.

So I have zero liability.

I'll do that in yellow.

Let's figure it out. It's equity.

One, what shares are share of

You love your heroes.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

And then the equity is, essentially we would look at this formula.

I have a problem too.

No, he's not in trouble!

Well, that means the ratio of the assets to the equity is 2 1.

And why is that?

liabilities.

In return on equity, the numerator is the net income that we got, so it's 350,000.

Good health is his capital.

So the only liability is this 5,000.

It's good for you.

And that seems like a pretty reasonable proposition.