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A firm has total debt of $1,500 and a debt-equity ratio of 0.35. What is the value of the total assets?

User Svarog
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1 Answer

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Final answer:

The value of the total assets is approximately $4,285.71.

Step-by-step explanation:

The value of total assets can be calculated using the formula:

Total assets = Total debt / Debt-equity ratio

In this case, the total debt is $1,500 and the debt-equity ratio is 0.35. Therefore, the value of total assets would be:

Total assets = $1,500 / 0.35 = $4,285.71

So, the value of the total assets is approximately $4,285.71.

User ChenYilong
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