Selzer Inc. sells all of its merchandise on credit. It has a profit margin of 4 percent, days sales outstanding equal to 60 days, receivables of $150,000, total assets of $3 million, and a debt ratio of 0.64. The firm's return on equity (ROE) is:
A. ?7.1%.
B. ?33.3%.
C. ?3.3%.
D. ?71.0%.
E. ?8.1%.
Answer: C
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