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Macy's, Inc. (M), sells merchandi s and Internet web site. Recent financial information for Macy's is provided below (all numbers in millions) Year 3 Year

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Macy's, Inc. (M), sells merchandi s and Internet web site. Recent financial information for Macy's is provided below (all numbers in millions) Year 3 Year 2 Net income Interest expense $1,526 864 $1,486 804 Year 3 Total assets Total stockholders' equity $21,461 5,378 Year 2 $21,620 6,249 Year 1 $20,991 6,051 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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