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Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
Lesson 3 Mar 11 2010
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Lesson 3 Mar 11 2010

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  • 1. Net Worth:  the difference between your total assets, and  your total liabilities. Assets: things that you own that are worth  something. Liabilities: what you owe
  • 2. Assets: Liquid Assets: assets that can easily be converted to cash
  • 3. Semi­liquid assets:  assets that can be converted to cash, but not  immediately. usually some type of long term  investment.
  • 4. Non­Liquid assets: assets that can not readily be converted to  cash. usually some type of property that must be  sold in some manner
  • 5. Liabilities: what you owe Short­term debt should be paid off within a 12 month period typically credit cards, and small loans
  • 6. Long­term debt debt used to finance long­term investments  like real estate, or major personal assets like  your residence. 
  • 7. Krista goes to her financial advisor to find out how  her net worth looks. She gives her advisor the  following information: ­ she lives in a $210,000 home with a mortgage of    $152,000.  ­ she has $35,000 invested in RRSPs ­ she has $734 in her chequing account and owes    $12,500 on her credit card. ­ she has a vehicle worth $15,000 but still owes    $5,000.
  • 8. ***
  • 9. *** Debt­Equity Ratio should not exceed 50% of Net  Worth. 
  • 10. Complete Assignment #5 And that's the end of the unit.

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