The Power of Equity

These two calculations quickly illustrate the power of equity:

  1. Multiply $1 by 0.77%   or   $(1 * 0.0077).  The result is $0.0077
  2. Divide $1 by 2.52%    or   $(1 ÷ 0.0252).  The result is $39.68

The first calculation shows what happens when you deposit $1 in a bank. You receive an interest rate return of 0.77% (as of January 28th, 2012), meaning you can walk away with $1.0077 in your pocket.

The second calculation shows what happens when a public company makes a $1 profit from your  purchase and allocates the $1 profit for dividends. The dividend rate for public companies is 2.52% (as of January 28th 2012). The public company’s market value has increased by $39.68. But you only walked away with the product.

If you buy something for $10 and the public company earns $1 (or 10% from your $10 purchase) which produces or sustains a $39.68 increase in equity value, then why is the public company refusing to share this equity value with you?

Why is the public company not sharing the equity value with its customers whose purchases produced the equity value? The management of the public company did not produce this $39.68 in equity value. We as the customers produce this equity value.

Now that the solution to the consumer debt problem is found with Product Equity Value©, it is time for new (and old) public companies to step forward and do the right thing! What these companies ought to do is very simple; plus it is in their self-interest to share the equity value with their customers.

At the Equity Score® Network we give the customers the two values that they produce (and deserve) from spending their hard-earned cash with public companies: the product and the equity value.

What is the Dividend Rate?

The dividend rate or dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its share price (see Dividend Yield definition at This definition is summarized by the following equation:

Dividend Rate = Dividends ÷ Share Price

Rearranging the terms of the equation above gives you the following equation:

Share Price = Dividends ÷ Dividend Rate

The change in share price is the equity value that is supported by the $1 profit (or dividends). This is the equation you used when you divided $1 by 2.52%. Review this page with closer attention.

By understanding these calculations, you along with millions of other subscribers will wipe out your debt while increasing your Equity Score®.

A few examples of the power of equity

When you consider the huge difference between the equity value created ($39.68) and the interest generated ($0.0077), you will greet the numerical examples below with less surprise. There is a half a million percentage difference (515,195% to be exact) between the equity value created by $1 and the interest generated by $1.

It may seem nonsensical… but the numbers do not lie. Take a look at the 3 or 4 examples below.

Peace Of Mind
Insurance ServicesFood and Housing categories. Imagine spending $301 on medical insurance and increasing your Equity Score® by $34,819. When you spend $1,080 monthly to own or lease a house, your Equity Score© is projected to increase by over $200,000. These huge projections are made because of your ownership interest in companies that are receiving more revenue than average from a loyal customer base.
Untaxing America
EducationFinancial Services and Organized Teamwork categories. Members of our network have access to an important white paper about the Untaxing of America. The author explains why the U.S. government would receive more tax revenue if the profits of companies and the wages of citizens are not taxed. Let's assume for a moment that your wages are taxed at a lower rate, thus freeing up about $710 in monthly cash. When you spend this cash with public companies that offer Product Equity Value© with their product or service, your Equity Score® is projected to increase by $82,209.
Communications, Transportation and Entertainment categories. When you spend $34 monthly on your Internet Connection, your Equity Score® is projected to increase by $1,821. This increase is more than 4 times the annual total expenditure for Internet Connection service.