Selected financial data from the June 30 year-end statements of Safford Company are given below: Total assets $ 5,500,000 Long-term debt (11% interest rate) $ 730,000 Total stockholders equity $ 2,100,000 Interest paid on long-term debt $ 80,300 Net income $ 410,000 Total assets at the beginning of the year were $5,300,000; total stockholders equity was $1,900,000. The companys tax rate is 40%. Required: 1. Compute the return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 2. Compute the return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 3. Is financial leverage positive or negative?