36. When firms with a positive Return on Equity add debt financing, their return on equity is typically enhanced. True or False

37. Debt financing adds to risk. True or False

38. Issuing common stock tends to (decrease/increase) Return on Equity.

39. To improve Return on Equity, a firm might consider more efficient marketing programs. True or False

40. A corporation has Sales of $80 million, Pretax Income of $25 million, Net Income of $20 million, Assets of $100 million and Equity of $40 million. Its Return on Assets is _________ . (2 pts)

41. A corporation has Sales of $80 million, Pretax Income of $25 million, Net Income of $20 million, Assets of $100 million and Equity of $40 million. Its Net Profit Margin is __________ . (2 pts)