Question: A fire has destroyed a large percentage of the financial records of the Carter Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 18 %. If sales were $4million, the debt ratio was 0.40, and total liabilities were $2million, what was the return on assets (ROA)?
a. 10.80%
b. 0.80%
c. 1.25%
d. 12.60%
e. Insufficient Information