Respuesta :
Answer: Option (c) is correct.
Explanation:
Given that,
EPS = $3.50
Book value per share = $22.75
Shares outstanding = 220,000
Debt-to-assets ratio = 46%
Total Equity (Book Value) = Book value per share × Shares outstanding
          = $22.75 × 220,000
          = $5,005,000
Total Assets = [tex]\frac{Total\ Equity}{1 - Debt\ to\ assets\ ratio}[/tex]
           =  [tex]\frac{5,005,000}{1 - 0.46}[/tex]
           = $9,268,518.52
Debt outstanding = Total Assets - Total Equity
               = $9,268,518.52 - $5,005,000
               = $4,263,518.52
               = $4,263,519 (approx)
