If you are talking stock marketand you can control other shareholders to 1.82 your voting rights levereged meaning more powerful in a company of partners the originl investment plus increased equity if reinvested in the co may make you the controlling partner as opposed to those who take the income in revenue please check this answer and get back to me as I am not positive I am understanding the concept as u intended
the return on equity divided by the return on assets
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.
One measure of leverage is Debt (or Liabilities) divided by Equity. The higher the figure, the greater is the leverage or reliance on debt to create shareholders equity.
Sum of all liabilities divided by sum of equity. E.g.: A company owes £150,000 as a bank loan, and has a share capital of £1,000,000. The debt/equity ratio is 15 per cent. This ratio is also known as "gearing" or "leverage".
ROE divided by ROA isi the equity multiplier, which is also equal to total assets divided by total equity.
Net worth = OE/Assets
make certain that the companies assets continues to be proportionally larger than the companies equity
Leverage
Leverage ratio (debt to equity ratio) is calculated by dividing a company's total debt by the company's total shareholder equity. Therefore, any new debt will raise the leverage ratio (and the risk to the bank). Example: Company has $1,000,000 in Total Assets; $400,000 in debt; $100,000 in other liabilities; and $500,000 in Equity. The company's beginning leverage ratio is 0.8 ($400,000/$500,000). Now, assume the company borrowers $250,000 to purchase additional equipment. The business would then have $1,250,000 in Total Assets; $650,000 in debt; $100,000 in other liabilities; and $500,000 Equity. The company's new leverage ratio would be 1.3 ($650,000/$500,000).
The five classifications of accounts are assets, liabilities, owner's equity, revenues, and expenses. Assets represent what a company owns, liabilities represent what a company owes, owner's equity represents the owner's investment in the business, revenues are the income generated from business activities, and expenses are the costs incurred to generate revenue.
I believe this is known as leverage.
forex lendor market