A fire destroyed a large percentage of the financial records of Carter Health System. You have the task of piecing together information to prepare a financial report. You find the profit margin to be 6.5 percent. If sales were $4 million on total assets of $3 million, and the amount of debt financing was $800,000, what was Carter's return on equity (ROE)?

A. 11.8 percent

B. 16.0 percent

C. 18.2 percent

D. 20.6 percent

E. 12.5 percent