Debt ratio = 0.45
Total debt/Total assets = 0.45
334,000/Total assets = 0.45
Total assets = 334,000/0.45 = 742,222.22
Total equity = Total assets - Total debt = 742,222.22-334,000
Total equity = 408,222.22
Return on equity = Net income/total equity
Return on equity = 43,000/408222.22
Return on equity = 0.1053 = 10.53%
Return on Equity = 10.53%
