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Problem 3 - 2 1 Profit Margin [ LO 4 ] In response to complaints about high prices, a grocery chain runs the following advertising

Problem 3-21 Profit Margin [LO4]
In response to complaints about high prices, a grocery chain runs the following advertising campaign: If you pay your child $6 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 22.8
Total assets 390.0
Total debt 260.0
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 and 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 and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)

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