Well, if total assets are $4MM, then total liabilities & equity are $4MM.

If debt ratio is 40%, then debt must be $1.6MM...so therefore equity is $2.4MM

Hello,

I am working on this question for my class and cannot figure out how to solve it, your help would be very much appreciated:

A company has annual sales of 18 million dollars, total assets of 4 million dollars, a debt-ratio of 40%, 200,000 depreciation expense, ad a tax rate of 40%. The company's total stock holder's equity is?

Thanks in advance!