You Are Considering Investing in Lenny's Lube, Inc

Multiple Choice

You are considering investing in Lenny's Lube, Inc. You have been able to locate the following information on the firm: total assets = $20 million, accounts receivable = $6 million, ACP = 20 days, net income = $5 million, and debt-to-equity ratio = 2.5 times. What is the ROE for the firm?

A) 2.5000 percent
B) 13.9882 percent
C) 35.0000 percent
D) 87.50 percent