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

liabilities.

One, what shares are share of

Remember the shares are split of the owner's equities not the split of the assets

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

liabilities really are only 105,000.

It has 500 million shares.

I'm bringing 5 million cash to the table,

So let's see, 825 minus 75.

They are generating the same economics from the operating part of their business.

Now, equity might not make a lot of sense to you right now, because I'm just saying, well, my equity is equal to my cash. in general, equity is just what you own.

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.

It can handle 4 million worth of debt.

Well, this is New York State, Art. You'll write her a check for half of everything.

liabilities plus equity.

So the value of my assets go down by 50 .

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

So this is just another visual representation that

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

If you're controlling 10 of assets and you only have 1 of equity, you have 10 1 leverage.

So let's say that you have no debt.

And that's your equity.

Arthur frobisher told his employees to invest in the company and then sold his own stock.

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

Capitalist country.

So he'll give us another 5 million. He'll essentially get 50 of the company.

I'll do that in yellow.

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

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.

Arthur Frobisher told his employees to invest in the company and then sold his own stock.

But just think of it this way, leverage is the ratio of how much assets you have over how much equity you have.

They just have it around.

So it essentially spreads out the cost of that 500,000 a year.

I guess you can't quantify charisma and good looks.

Looks, brains, and background may not be much, but you're the first girl I've approved of.

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

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

Good health is his capital.

So the only liability is this 5,000.