Q37: Which ratio was primarily designed to monitor firms with negative earnings? A. Price-sales ratio B. Market-to-book ratio C. Profit margin D. ROE E. ROA Q38: Outdoor Gear reduced its general and administrative costs this year. This cost improvement will increase which of the following ratios? 1. Profit margin II. Return on assets III. Total asset turnover IV. Return on equity A. I and II only B. I and III only C. II, III, and IV only D. I, II, and IV only E. I, II, III, and IV Q39: Donovan's would like to increase its internal rate of growth. Decreasing which one of the following will help the firm achieve its goal? A. Return on assets B. Net income C. Retention ratio D. Dividend payout ratio E. Return on equity