A Fire Has Destroyed a Large Percentage of the Financial

Multiple Choice

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 percent.If sales were $4 million,the debt ratio was 0.40,and total liabilities were $2 million,what was the return on assets (ROA) ?

A) 10.8%
B) 0.8%
C) 1.25%
D) 12.6%
E) Insufficient information.