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In response to complaints about high prices, a grocery chain runs the following advertising campaign: If you pay your child $3 to go buy $100
In response to complaints about high prices, a grocery chain runs the following advertising campaign: If you pay your child $3 to go buy $100 worth of groceries, then your child makes twice as much on the trip as we do. Youve collected the following information from the grocery chains financial statements: |
($ in millions) | |||
Sales | $ | 760.0 | |
Net income | 11.4 | ||
Total assets | 400.0 | ||
Total debt | 270.0 | ||
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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 store's ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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