So 5 million of liabilities.

Proportion

Proportional Bias

Ratio

So let me switch colors just to ease the monotony.

I owe these people that money is 700 and my equity is 300.

Golden ratio

Keep ratio

Keep Ratio

We have a minus fifteen apples.

I actually haven't used white.

I'll do apples in this reddish color.

There are four boys, four boys and seven girls. That's what this ratio tells us.

So then on this day he borrows one share.

It's just a faster way of saying

Image to text ratio

Maybe that's 2 and that's 1 like that.

So the ratio is 10 to 6, which is the same thing as 5 to 3.

That's what I start off with.

looks neutral.

Will keep the ratio constant

Or I could also write it as five eight, just like that.

I own 1,000 shares of NTT stock.

You'll hear people talking in terms of 10 1 or 2 1, or something to one, but 10 3 is a fair leverage ratio.

In the next video, I'll show you that the reason why this is kind of breaking down is because a price to earnings ratio does break down to a certain degree when you start comparing things with different capital structures.

So a lot of people immediately will figure out the Price to

So in 2013 you'll be making 16.

OK, that's interesting.

So the ratio of a to o is equal to what?

Well let's go back to the farm example.

You move these two triangles over here together into a single triangle. It looks like this.

No, I did not. Or that he owned a thousand shares of stock in your company?

But I'll get back to that in a second.

I take away fifteen when I take away fifteen apples.

So let's think about it this way.

I repeated this experiment 1000 times and that means

And in the developing world overall,

lets find the ratio of B to A minus B

Well, we know a few things.

And they want the washing machine.

We know these two things are true.

I think you get the general idea.

Gregory malina owned frobisher stock?

Grory malina owned frobher stock?

And we're done!