Question

On an average, the percentage of capital to asset ratio that a finance compnay is

Answer 1

Explanation:

Capital refers to the net worth of a company. To find a company's capital, review its balance sheet and deduct its total liabilities from its total assets. In calculating the capital-to-asset ratio, only consider Tier 1 capital instead of total capital. Tier 1 capital includes common stocks, preferred stocks, retained earnings and minority interest. It excludes losses the company suffers from bad debts and intangible assets, such as goodwill.