Final answer:
The value of the total assets is $7,597.27.
Step-by-step explanation:
To find the value of the total assets, we need to calculate the equity of the firm. The equity can be calculated by subtracting the total debt from the total assets. From the given information, we know that the total debt is $1,370 and the debt-equity ratio is 0.22. Therefore, we can calculate the equity as follows:
Equity = Total Debt / Debt-Equity Ratio
= $1,370 / 0.22
= $6,227.27
Now, to find the value of the total assets, we can use the formula:
Total Assets = Total Debt + Equity
= $1,370 + $6,227.27
= $7,597.27