Business Equity Explained in 7 Slides

Business Equity Explained in 7 Slides

Equity represents the number of shares that stockholders own or the amount of money that the company would return to its shareholders if it chose to pay off its debts and sell all its assets.

How to Calculate Business Equity

Business Equity Formula

Total assets - Total Liabilities

Components of Business Equity

The four primary components of business equity are: 1. outstanding shares 2. additional paid-in capital 3. retained earnings 4. treasury stock

Types of Equity

Common types of equity include: 1. brand equity 2. home equity 3. owner's equity 4. private equity 5. shareholders' or stockholders' equity

Equity Financing

Equity financing involves trading a percentage of business ownership with an investor for funding, without incurring any loan or financial burden.

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