You Are Thinking of Investing in Tikki's Torches, Inc

Multiple Choice

You are thinking of investing in Tikki's Torches, Inc. You have only the following information on the firm at year-end 2018: net income = $500,000, total debt = $12 million, and debt ratio = 40 percent. What is Tikki's ROE for 2018?

A) 1.67 percent
B) 2.78 percent
C) 4.17 percent
D) 10.42 percent