Final answer:
To calculate the value of the total assets, divide the total debt by the debt-equity ratio to determine equity. Then, add the debt and equity together to find the value of the total assets.
Step-by-step explanation:
To calculate the value of the total assets, we need to determine the equity of the firm first. The debt-equity ratio is given by dividing the total debt by the equity. In this case, the debt-equity ratio is 0.26, which means that for every $0.26 of debt, there is $1 of equity. If we let x represent the equity, we can set up the equation 0.26x = 1410 and solve for x. Dividing both sides by 0.26 gives x = 1410 / 0.26. Evaluating this expression, we find that the equity is approximately $5430.77. The value of the total assets is equal to the sum of the debt and the equity, so the total assets would be approximately $6840.77.