A firm has total debt of $4,620 and a debt-equity ratio of 0.57. What is the value of the total assets?
A)$6,128.05
B)$7,253.40
C)$9,571.95
D)$11,034.00
E)$12,725.26

Name: A firm has total debt of $4,620 and a debt-equity ratio of 0.57. What is the value of the total assets? A)$6,128.05 B)$7,253.40 C)$9,571.95 D)$11,034.00 E)$12,725.26
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Question

Quizplus · Accepted Answer

Total equity = $4,620/0.57 = $8,105.26Total assets = $4,620 + $8,105.26 = $12,725.26

A Firm Has Total Debt of $4,620 and a Debt-Equity