ABC Company has a year-end of December 31, 2022. As the auditor for the company, you have been given the following information:

• Total assets as of December 31, 2022, are $10,000,000.
• Total liabilities as of December 31, 2022, are $3,000,000.
• Net income for the year ended December 31, 2022, is $1,000,000.
• The company has issued 100,000 shares of common stock with a par value of $10 per share.
• The company has declared and paid dividends of $2 per share to common shareholders.

Calculate the following ratios for ABC Company for the year ended December 31, 2022:

a) Debt-to-Equity ratio

b) Return on Equity (ROE) ratio