It can do it through debt or equity.

So it's 7 3 is my debt to equity ratio.

So they all have 500,000 of debt from the home equity

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?

leverage, it's assets to equity another one that people often use, often in the investing world, is debt to equity.

It lists already 1,000 entities that are offering debt and equity for social enterprise.

And what's left over for the equity?

Sal Whatever's left over is your equity.

And we learned that the debt holders were actually more senior to the equity holders.

We know what's left over is the equity.

Because it has no liabilities, it has no debt, and its assets are equal to its equity.

So what's left over for me is 250,000 of equity.

And when it makes more sense to raise money with debt versus equity, because of the cost of interest.

And if there wasn't enough money to pay all of the debt holders, then the equity holders got nothing.

If I just enter into some transaction where I get cash in exchange for debt, my equity shouldn't change.

And the equity guys would get left over with whatever else.

And then anything that's left over goes to the equity holders.

It's the split of just the equity part right over here

And of course, the first 6 million of the value so the 4 million of debt, and then 2 million of the equity will go to the debt holders, right?

And the equity's 1 million, because there's no debt, so all of the assets are held by the equity holders.

So now, it can only handle 2 million of debt, and then there will be 3 million left of equity.

And then you have to subtract out the cash that has to be used to pay the debt holders, because you're paying interest, and then what's left over for equity.

So equity.

Equity tranche.

That's equity.

What debt?

And then what's left over, which is essentially so this is 2 million of equity, and then you'd have 2 million of equity here this 2 million of new equity, right?

Equity is what's left over. So let's say this is all book value.

That's my equity.

liabilities plus equity.

This was equity.

left for equity.

liabilities plus equity.

What's my equity?

That's my equity.

liabilities plus equity.

That's my equity.

And this is called the equity, or the owners' equity.

We strike debt!

But this is debt. 80 million of debt right here.

And the equity holders get wiped out, the old equity holders.

And even within the debt, you'll have different layers of debt.

And so their equity will get wiped out and the cascade will start over again.

Sometimes called stockholders' equity.

It's all his equity.