Assume that a company has an average collection period 20 days, accounts receivable of $1,000, a net profit margin of 5%, a payables period of 30 days, total asset turnover of 2.0 and debt ratio of 75%. Its return on equity (ROE) is _________________.

a. 20.0%

b. 10.0%

c. 80.0%

d. 40.0%

e. 7.5%

*Please show work!