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Debt to equity ratio: Calculating company risk - MSN
The debt-to-equity calculation is fairly straightforward: Divide a company's total liabilities by shareholders' equity to calculate the debt-to-equity ratio.
Financial leverage—total assets divided by common shareholder’s equity—indicates the degree to which the firm has been financed through debt as opposed to equity sources.
Equity is the portion of the home that you own. Knowing how to calculate home equity can help you decide how and when to access it.
* Tier 1 capital includes common stockholders' equity, noncumulative perpetual preferred stock, minority interests in consolidated subsidiaries, among other items.
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