A Firm with Sales of $1,000,000, Net Income After Taxes

Multiple Choice

A firm with sales of $1,000,000, net income after taxes of $30,000, total assets of $1,500,000, and total liabilities of $750,000 has a return on equity of

A) 4 percent.
B) 15 percent.
C) 20 percent.
D) 3 percent.