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LESSON TWO: How To Calculate Return On Equity And Get Really Rich

In this lesson you’ll learn about return on equity, the three equity business fundamentals that contribute to equity returns and how to put them to use in order to create true wealth. If you have yet to tune into STORE University, head back to Lesson 1 to further understand how to value your business.

What is Shareholder Equity? It's important to accurately calculate return on equity - the first step is calculating shareholder equity.


What is Shareholder Equity?

Contrary to popular belief, you do not need to be a math wizard in order to be a successful businessperson. However, one key element to know and understand is, “What is return on equity?” Dive into the details and learn about sources of equity with Chris Volk, CEO of STORE Capital.

Equity Creation Business value is driven by equity returns - the better the returns the more value created.


Equity Creation

The value of a business is propelled by equity returns, i.e. the higher the returns, the more value you can create. Equity returns are a function of three interwoven business fundamentals: Operating Efficiency, Asset Efficiency and Capital Efficiency. Learn more about these fundamentals with Chris Volk, CEO of STORE Capital

The Secrets to Creating Wealth Once you learn how to calculate return on equity you're ready to learn the secrets to creating true wealth.


The Secrets to Creating Wealth

Now that you’ve discovered what your return on equity is and how the three interwoven fundamentals of Operating Efficiency, Asset Efficiency and Capital Efficiency can affect equity from Parts 1 and 2, let’s put these components to use. Watch as Chris Volk, CEO of STORE Capital, guides you through a hypothetical business scenario.

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