Crane Company has $1,020,000 in assets and $1,020,000 in stockholders equity, with 39,000 shares outstanding the entire year. It has a return on assets of 10%. During 2021, it had net income of $102,000. On January 1, 2022, it issued $370,000 in debt at 6% and immediately repurchased 19,500 shares for $370,000. Management expected that, had it not issued the debt, it would have had net income of $102,000 in 2022. Assume the company pays dividends on common stock equal to its net income each year. Also, assume the accrued interest on the debt was paid at December 31, 2022 and the company has no other debt outstanding at year-end.

Compute the companys return on common stockholders equity in 2022. What is the return on the stockholders equity in 2022?

Compute the companys debts to assets ratio. What is the debt to assets ration for 2022?