Yarrow Company increased its investment in long-term assets by 20% in the past three years. This investment was financed by rapid increases in cash generated from operating activities. Cash from operating activities also was used to repay about 30% of Yarrow’s long-term debt and to repurchase 10% of its common stock. What effect would you expect these events to have on the company’s return on assets and return on equity? Does the company appear to be a good prospect for additional debt financing?