As profit of the organisation is added to the capital of that organisation. Capital efficient firms earn more profit. Thus investors get better returns on investment. When you invest in any enterprise, you raise the capital of that organisation. You get dividend on Capital. Additionally you earn from your percentage of share in the capital of that organisation.
Equity loan means a mortgage loan in which the borrower receives money from the financial institution. This concept is mainly practiced in the real estate sector.
Ex: Suppose a person owns a flat worth $500000 and wishes to buy another property, he/she may be entitled to 80% equity loan that is $400000.
It is that value of the property (movable or immovable) for which the buyers are willing to pay a certain amount of money.
Assessed value :
It is that value of the property (movable or immovable) which has been assessed by a valuer.
Parameters to determine market value.
1. The entire economy of that particular country.
2. Every economic sector is linked to everyother sector.
Parameters to determine assessed value.
1. The current condition of the property (movable or immovable).
2. The location where it is situated.