For the year 2020, Red Inc. reported net income of $600,000 and a rate of return on assets of 6%. An evaluation of Red Inc.'s balance sheet for the same year indicates that Red had a debt to equity ratio of as of the end of 2020 of 3.00. What is Red's rate of return on equity?

Multiple Choice

• 2%

• 6%

• 8%

• 24%