1. If the liquidity, asset management, debt management, and profitability ratios all look bad and if investors think these ratios will continue to look bad in the future, the market value ratios will be high, the stock price will be as low as can be expected, and management will be judged to have been doing a bad job. * True O False 2. The profitability ratios reflect the net result of all of the financing policies and operating decisions. * True False 3. It might be possible to improve the ROE by using more debt, which in turn will lead to an increase in the P/E ratio and thus in the firm's stock price* True