A Firm Has Total Debt of $2,200 and a Debt-Equity

question 83

Multiple Choice

A firm has total debt of $2,200 and a debt-equity ratio of 0.32.What is the value of the total assets?

• A)$2,904
• B)$4,675
• C)$9,075
• D)$6,875
• E)$7,225

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Definitions:

Circle

A simple closed shape consisting of all points in a plane that are a given distance from a given point, the centre.

Cartel

An association of independent firms or countries that agree to coordinate their production and pricing to monopolize a market or to influence market conditions.