The Following Information Is Available What Is the Return on Equity? (Round to the Nearest

Multiple Choice

The following information is available: $\begin{array}{ll}\text { Sales } & \$ 400,000 \\\text { Profit } & \$ 20,000 \\\text { Retained Earnings } & \$ 40,000 \\\text { Avg. Shareholders' Equity } & \$ 130,000 \\\text { Dividends } & \$ 6,000\end{array}$ What is the return on equity? (round to the nearest number)

A) 5%.
B) 20%.
C) 25%.
D) 15%.