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What Is Business Equity? How to Calculate Company Value

January 12, 2023

Via: CO
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If you want to understand business finance, then it’s important to understand the concept of equity. Equity is one of the most common ways to evaluate a company’s financial stability. Let’s look at how equity works, how it’s calculated, and the different types of business equity.

What is equity?

Equity is the value of your business after deducting your liabilities from your assets. It’s the total amount of money that would be returned to your shareholders if your debt was paid off and your assets were liquidated.

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