taylorsamodell2191 taylorsamodell2191
  • 10-07-2020
  • Business
contestada

A firm has total debt of $1,480 and a debt–equity ratio of .33. What is the value of the total assets?

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Tundexi
Tundexi Tundexi
  • 14-07-2020

Answer:

The Value of the Total assets is $5964.85

Explanation:

The formulae for deriving Debt-equity ratio =  debt / equity

Then, Equity = Debt / Debt-equity ratio

Hence Equity= (1480 / 0.33) = $4484.85

Whereas, Total assets = Total liabilities (Debt) + Total equity

Value of the Total assets = 1,480 + 4,484.85

Value of the Total assets = $5964.85

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