105k views
1 vote
Cado industries has total debt of $6,800 and a debt-equity ratio of .36. what is the value of the total assets

User Krissa
by
6.7k points

1 Answer

4 votes
total debt = $6,800
debt equity ratio = 0.36
now first we calculate the total equity by using this formula,

Total equity = total debt / debt equity ratio

total equity = $6,800 / .36

= $18,889

Now total assets = total debt + total equity

Total assets = $6,800 + 18,889

= $25,689

thus the value of assets is $25,689
User Wurstbro
by
6.5k points