Maryboonbe
1 Answer
Carol2050
It refers to how much a person owes in debts to others
and how much a person has in money, things that can be easily turned into money and valuable property.
There is an equation that bankers and loan companies use to calculate how much to loan you based on how much you own vs how much you owe.
This debt to equity ratio is the basis of how they calculate how much you can borrow. I don't know the exact equation, but it involves how much you owe and how much you own.
| 14 years ago. Rating: 1 | |
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