Global Ventures has a return on equity of 9.8 percent, a retention ratio of 60 percent, and a profit margin of 4.5 percent. The company paid $378 in dividends and has net working capital of $100. Net fixed assets are $18,550 and current liabilities are $520. What is the total equity of the firm?
A) $6,457
B) $6,890
C) $7,360
D) $9,643
E) $11,480

Question

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The Answer of Global Ventures has a return on equity of 9.8 percent, a retention ratio of 60 percent, and a profit margin of 4.5 percent. The company paid $378 in dividends and has net working capital of $100. Net fixed assets are $18,550 and current liabilities are $520. What is the total equity of the firm?
A) $6,457
B) $6,890
C) $7,360
D) $9,643
E) $11,480

Global Ventures Has a Return on Equity of 9