A fire destroyed a large percentage of the financial records of the Carter Health System. You have the task of piecing together information to prepare a financial report. You have found the profit margin to be 5.4 percent. If sales were $4 million on total assets of $2 million and the amount of debt financing was $800,000, what was Carter's return on equity?
1) 13.8 percent
2) 18.0 percent
3) 19.2 percent
4) 21.6 percent
5) 25.8 percent