The following information pertains to Maxwell Corporation. Assume that all balance sheet amounts represent both average and ending figures.

Maxwell Corporation
Partial Balance Sheet
December 31, 2009
Liabilities and Stockholders' Equity
Current liabilities		$ 60,000
Long-term liabilities		90,000
Stockholders' equity		150,000
Total liabilities and stockholders' equity		$300,000

Maxwell Corporation
Income Statement
For the Year Ended December 31, 2009
Net sales		$80,000
Cost of goods sold		45,000
Gross margin		$35,000
Operating expenses		15,000
Income before income taxes		$20,000
Income taxes expense		5,000
Net income	$15,000

Maxwell Corporation had 6,000 shares of common stock issued and outstanding. The market price of common stock on December 31, 2009, was $20. Maxwell paid dividends of $0.90 per share during 2009.

Maxwell Corporation had 6,000 shares of common stock issued and outstanding. The market price of common stock on December 31, 2009, was $20. Maxwell paid dividends of $0.90 per share during 2009.

What is the return on equity for Maxwell Corporation?

a. 53.3%

b. 23.3%

c. 11%

d. 5%

e.10.0%

f.100%

What is the debt to equity ratio for this corporation?

a. 2.5 times

b. 1.5 times

c. 0.6 times

d. 0.4 times

e. 10 times

f. 1.0 times