Answer : Return on equity is 15.86 %

Working notes for the above answer

We have provided with the information that,

return on assets of 6.1

total asset turnover rate of 1.8 and

debt-equity ratio of 1.6.

Assets turnover = Net sales / Avrage total assets=1.8

Debt eqity ratio = Total liabelty / Shareholder equity =1.6

Return on asets = Net income/ average total assets=6.1

Return on Equity = Net Income/Shareholder’s Equity

Return on equity = 0.061 × (1 + 1.6) = 15.86 percent