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An individual will consider that he is treated fairly if he perceives the ratio of his inputs to his outcomes to be equivalent to those around him. Thus, all else being equal, it would be acceptable for a more senior colleague to receive higher compensation, since the value of his experience (an input) is higher. Example: If you own a home that's worth $60,000, but you only owe $30,000 on the mortgage, your equity is $30,000. If you owe $40,000 on the mortgage, then your equity is $20,000.
Wiki User
∙ 16y ago
Wiki User
∙ 12y agoEquity means even-handedness and justice.
In English judicial history it means a body of law developed by the Courts of Chancery which modified the law with a view to making it fairer. The same legal issue might have an answer according to Law and another according to Equity, which the judges arranged to coexist.
In mortgage law it means the value of a property less the amount of mortgage debt secured against it. In English law, defaulting on a mortgage meant the forfeiture of the property no matter how small the debt secured, but Equity said that the property owner should have every opportunity to recover his interest in the property.
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What is Accounting definition of equity?
Equity = Assets -Liabilities Equity is also referred to as the first loss when earnings are depleted. Equity = Common Stock (at Par) + Paid in capital + Pref. Stock + R/E (NI)
If a company's return on equity is 10 percent its profit margin is 5 percent and its asset turnover is 1.57 what is it's equity multiplier?
EQUITY MULTIPLIER=Total Assets / Total Stockholders' Equity
What is the formula to find BV of Equity Acquired?
Formula to Find the Equity
How do you compute ROE if there is loss and negative equity?
To compute for ROE if there is loss and negative equity, divide the company's net income by the stockholders' equity. A negative ROE does not necessarily mean bad news.
What is ROE divided by ROA?
ROE divided by ROA isi the equity multiplier, which is also equal to total assets divided by total equity.
What is the relationship between brand loyalty and brand equity?
Definition of brand loyalty definition of brand equity measurement of brand equity and brand loyalty relationship between brand equity and brand loyalty
Where can a person find an explanation detailing the definition of return on equity?
The definition of return on equity is the amount of net income returned as a percentage of shareholders equity. More information can be found at Investopedia and Wikipedia.
What is the definition of injustice'?
Unfairness, or a lack of equity.
Definition of accounting equation?
Assets = Liabilities + Equity
What is an equity interest definition in science?
An equity interest definition in science refers to a proportion of ownership, typically via investment in a business. Stocks are also known as equities.
What is a good definition of economic equity?
Economic equity is the concept of fairness in economics, especially concerning taxation or welfare.
Definition of contra equity?
Contra Equity refers to an equity account with a normal debit balance, where as other standard equity accounts have normal credit balances. Expense accounts are contra equity accounts because they are used to find totals for a debit of the owner's equity account.
What is Accounting definition of equity?
Equity = Assets -Liabilities Equity is also referred to as the first loss when earnings are depleted. Equity = Common Stock (at Par) + Paid in capital + Pref. Stock + R/E (NI)
What is the financial formula to determine equity multipliers?
The definition of "equity multiplier" is the measure of financial leverage and shows a company's total assets per dollar of stakeholder's equity. It is calculated as: Total Assets divided by Total Stockholder's Equity.
Deffnation of equity?
The definition of equity is the quality of being fair and impartial. There is also the value of the shares issued by a company, if you are looking on the business side.
What's the definition of equity home interest loan?
A home equity loan is a loan that uses ones equity for money. Home equity loans have fixed intrest rates that assure consistent payments within a certain payment period.
What is the definition of 'equity capital'?
Equity capital is that part of a company's shares that are owned by the individual, or the part of the capital of a company that is provided by the sale of business stock.
