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

Building materials are expensive now.

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

For Principal Fuentes, PS 24's modest investment in the programs has paid big dividends.

Now we have 3,000 apples being produced, because these were really good investments.

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.

The return on the investment will be high.

liabilities plus equity.

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.

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

I'll draw it a little bit bigger.

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

The most obvious solution is to take from those who earn the most.

Capitalist country.

So he owns it outright so all of the 100,000 of asset value is actually his equity.

So 26 billion of assets minus 23 billion of liabilities means that we have 3 billion of equity of shareholders' equity.

I'll do that in yellow.

What's my equity?

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.

A high savings rate is cited as one factor for Japan's strong economic growth because it means the availability of abundant investment capital.

And there's much more solar than there is wind.

Japan is poor in natural resources.

liabilities.

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.

It's good for you.

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

These are my assets, and these are my liabilities.

And so liabilities plus equity is equal to assets.

The advantage the country had was human capital nothing else but human capital.

What you want to do is to aggregate it all together.

So that's a liability.