Question
Macy's, Inc. (M), sells merchandise through company-owned retail stores and an Internet website. Recent financial information for Macy's is provided below (all numbers in millions).
Macy's, Inc. (M), sells merchandise through company-owned retail stores and an Internet website. Recent financial information for Macy's is provided below (all numbers in millions). Year 3 Year 2 Net income $1,536 $611 Interest expense 321 367 Year 3 Year 2 Year 1 Total assets $19,381 $19,851 $20,516 Total stockholders' equity 5,661 4,322 4,253 Assume the apparel industry's average return on total assets is 10.3%, and the average return on stockholders' equity is 33.3% for Year 3. a. Determine the return on total assets for Macy's for Years 2 and 3. Round your percentage answers to one decimal place. Year 3 fill in the blank 1 7.8 % Year 2 fill in the blank 2 3.0 %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started