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XZY Cars LLC has sales of $1,000,000, total assets of $3,000,000, and a profit margin of 0.5. The firm has a total debt-to-total assets ratio

XZY Cars LLC has sales of $1,000,000, total assets of $3,000,000, and a profit margin of 0.5.

The firm has a total debt-to-total assets ratio of 50 percent. What is the return on equity (ROE)?

A. 0.3

B. 0.6

C. 1.2

D. 0.4

E. 0.5

C. 1.2

D. 0.4

E. 0.5

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