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7 on d Internet web in millions) % E9-18 Profitability metrics Macy's, Inc. (M), sells merchandise through company-owned retail stores and Inter site. Recent financial

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7 on d Internet web in millions) % E9-18 Profitability metrics Macy's, Inc. (M), sells merchandise through company-owned retail stores and Inter site. Recent financial information for Macy's is provided be vided below (all numbers in milli Year 3 Year 2 Net income $1,526 $1,486 Interest expense 864 804 p Total assets Total stockholders' equity Year 3 $21,461 5,378 Year 2 $21,620 6,249 Year 1 $20,991 ,051 6 Assume the apparel industry's average return on total assets is 8.2%, and the average return on stockholders' equity is 10.0% for Year 3. a. Determine the return on total assets for Macy's for Years 2 and 3. Round to one decimal place. b. Determine the return on stockholders' equity for Macy's for Years 2 and 3. Round to one decimal place. C. Evaluate the changes in the profitability ratios determined in (a) and (b)

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