That assets, A for assets, is equal to

It should start to make a little bit of intuitive sense

And it's essentially, what is the market saying the equity is worth?

The county took a tax assessment of this property last month.

liabilities plus equity.

I'll do that in yellow.

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.

Scott's job is to evaluate the assets of companies.

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

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

I cannot in all honesty say that this is now worth, that this is a 1 million asset.

So, remember, assets are equal to liabilites plus shareholder's equity, so if all of a sudden the market value of the equity, the market capitalization, for Ben's shoe company is 215,000... (That is the equity part right over here)

How do we take their contributions to their jobs, their communities and their families, and convert that value into reputation capital?

Remember liabilities plus equities are equal to assets.

Everyone with loans to Bank A all of a sudden gets afraid.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

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

So its assets.

The book value of the assets, or what the accountants within the company are saying the assets are worth.

And that's not what matters.

But the market value or assets is essentially, what is the market saying the assets are worth?

let me give you that piece of terminology, it just means net asset value.

Malibu Equity and Investments.

liabilities.

These are my assets, and these are my liabilities.

This financial audit also includes an evaluation of the company's assets.

That just comes out of the definition of what equity is.

And so liabilities plus equity is equal to assets.

I'll draw it a little bit bigger.

We need flat land, we need 300 days of sunlight, and we need to be near a gas pipe.

So I'm going to give you a little equation, actually, just to take a little bit of a tangent.

My liabilities would be 145,000.

Malibu Equity and Investments. Roger Van Zant.

Right?

Mmhm. It's a real estate investment.

These are their assets, just to get all the labelling right.

that assets are equal to liability plus equity.

What's my equity?

So what is the value per share?

And there's only 10 shares. So they're valuing the assets at 500,000. And this is of course the market value of the assets.

I don't want to draw this box.

And rich, eh?