Return on Equity Assignment | Homework For You
In response to complaints about high prices, a grocery chain runs the following advertising campaign: “If you pay your child $4 to go buy $50 worth of groceries, then your child makes twice as much on the trip as we do.” Youve collected the following Information from the grocery chains financial statements:
($ in millions) Sales $720.0 Net Income 28.8 Total assets 450.0 Total debt 320.0
a. What is the profit margin for the child as a percentage of what they spend and the profit margin for the store? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What is the stores ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Childs profit margin Stores profit margin
b. Stores ROE. Get Finance homework help today