Macy's, Inc. (M) operates department stores under brands such as Macy's and Bloomingdale's. The following data (in millions) were taken from recent financial statements of Macy's:

Line Item Description	Amount
Net income	$ 1,430
Total assets at the beginning of the year	17,706
Total assets at the end of the year	17,590

1. Compute the return on assets for Macy's using the preceding data. Round to one decimal place. fill in the blank 1 of 1%

2. Assume WalMart's return on assets is 5.2%. Complete the statements below regarding the comparison of the return on assets for WalMart to that of Macy's.

Macy's return on assets is fill in the blank 1 of 4

higher thanlower thanthe same as

Walmarts return on assets. This reflects Macy's fill in the blank 2 of 4

premium-price strategylow-cost strategy

that allows it to sells its products at fill in the blank 3 of 4

higherlower

prices and markups. In contrast, WalMart operates in a highly competitive market with a fill in the blank 4 of 4

premium-price strategylow-cost strategy

.