Question: 5. The Carter Co.s return on equity (ROE) is 18%. If sales were $4 million, the debt ratio was 40%, and total liabilities were $2

5. The Carter Co.s return on equity (ROE) is 18%. If sales were $4 million, the debt ratio was 40%, and total liabilities were $2 million, what would be Carters return on assets (ROA)?

A. 10.80%

B. 0.80%

C. 1.25%

D. 12.60%

E. Insufficient information

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