So 5 million of liabilities.

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.

And on the cash flow statement you express that saying

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

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

And so liabilities plus equity is equal to assets.

So if you add these two together, alone, you can see a separation that nuclear puts out at least nine to 17 times more CO2 equivalent emissions than wind energy.

And so it takes a very large footprint on the land, a very large footprint in terms of materials, five to 10 times what you'd use for nuclear, and typically to get one gigawatt of electricity is on the order of 250 square miles of wind farm.

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

Open an example vocabulary document

We have a very, very steady business.

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

That was one of those turning points where I said, wow what am I doing here?

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

liabilities plus equity.

The company was started with 100,000 in capital.

I still owe the almost 1.075 million.

Yes, put that aside.

Japan's money power has a global reach now.

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.

In this case, the ratio of our assets to equity so we have assets to equity leverage, is what people say in this case, it's 1,000 to 300 or what is it?

Assets are always equal to liabilities plus equity.

The province is relatively rich in mineral resources.

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

Because if someone tells you debt to equity, you can figure out the assets to equity, but in this case, the debt to equity ratio before I took any losses it was what?

Capitalist country.

So a lot of times people when they talk about leverage, you might hear someone say, 2 1 leverage.

The region is relatively rich in mineral resources.

That area is relatively rich in natural resources.

But I just wanted to make it clear that that's obviously the best way to generate capital for your business is when the business itself generates capital.

Wait! But we spent that 60,000, especially in year 1

I'll do that in yellow.

Because most of you compared the price of this Big Mac to the price you're used to paying.

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.

In the last set of videos, we've hopefully familiarized ourselves with the different ways that a company can raise capital.