7. International Relations, Inc. has a return on equity of 12.5 percent, a retention ratio of 70 percent, and a profit margin of 7 percent. The company paid $127.50 in dividends and has net working capital of $850. Net fixed assets are $2,025 and current liabilities are $400. What is the total equity of the firm? O2,543 O 1,625 2,875 3,400

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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7. International Relations, Inc. has a return on
equity of 12.5 percent, a retention ratio of 70
percent, and a profit margin of 7 percent. The
company paid $127.50 in dividends and has
net working capital of $850. Net fixed assets
are $2,025 and current liabilities are $400.
What is the total equity of the firm?
O2,543
O 1,625
2,875
3,400
Transcribed Image Text:7. International Relations, Inc. has a return on equity of 12.5 percent, a retention ratio of 70 percent, and a profit margin of 7 percent. The company paid $127.50 in dividends and has net working capital of $850. Net fixed assets are $2,025 and current liabilities are $400. What is the total equity of the firm? O2,543 O 1,625 2,875 3,400
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