18. If Company A has a high profit margin and Company B has a low profit margin, then return on assets A) should be higher for Company A than Company B. B) should be lower for Company A than Company B. C) should be the same for Company A and Company B. D) cannot be determined based on the information given. Use the following to answer questions 19-22: Below is selected information from Tripe Corp: Year 1 Year 2 Net operating assets /common equity 1.37 1.53 Net operating profit margin 19% 21% Income tax rate 47% 28% Revenues/net operating assets 0.81 0.61 EBIT/revenues 38% 32% 19. Return on Net Operating Assets for Year 1 is: A) 30.8% B) 16.3% C) 15.4% D) 14.5% 20. Return on Common Equity for Year 1 is: A) 19.0% B) 19.60% C) 21.08% D) 26.03% 21. Which of the following is correct concerning changes at Tripe Corp. from Year 1 to Year 2? RNOA ROCE A) Increased Increased B) Increased Decreased C) Decreased Decreased D) Decreased Increased 22. Which of the following statements is correct concerning changes from year 1 to year 2 at Tripe Corp? A) Despite favorable changes in the tax rate return on net operating assets has decreased B) Despite favorable changes in net operating asset utilization return on net operating assets has decreased C) Largely because of favorable changes in tax rates return on net operating assets has increased D) Largely due to favorable changes in leverage return on net operating assets has increased