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Boutique Marketing has a total debt of $4,910 and a debt-equity ratio of 0.52. What is the value of the total assets?

a. $1,612,805
b. $572,534
c. $957,195
d. $10,340
e. $14,352,310

User Chacewells
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1 Answer

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Final answer:

Option (e), The value of the total assets is $14,352.31, which is approximately $14,352,310.

Step-by-step explanation:

To find the value of the total assets, we need to use the debt-equity ratio formula:

Debt-Equity Ratio = Total Debt / Total Equity

Given that the debt-equity ratio is 0.52 and the total debt is $4,910, we can calculate the total equity as follows:

Total Equity = Total Debt / Debt-Equity Ratio = $4,910 / 0.52 = $9,442.31

Next, we can calculate the total assets by adding the total debt and the total equity:

Total Assets = Total Debt + Total Equity = $4,910 + $9,442.31 = $14,352.31

Therefore, the value of the total assets is $14,352.31, which is approximately $14,352,310.

User Dhaval Pankhaniya
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