Pacific Fixtures lists the following accounts as part of its balance sheet.

Total assets $................................................... 10,000,000

Accounts payable .............................................$ 2,000,000

Notes payable (8%) .......................................... 1,000,000

Bonds (10%) ........................................................ 3,000,000

Common stock at par .......................................... 1,000,000

Contributed capital in excess of par .................. 500,000

Retained earnings ................................................... 2,500,000

Total liabilities and stockholders’ equity.............. $10,000,000

Compute the return on stockholders’ equity if the company has sales of $20 million and the following net profit margin:

a. 3 percent

b. 5 percent