Profitability Metrics

Macy's, Inc. (M), sells merchandise through company-owned retail stores and Internet website. Recent financial information for Macy's is provided below (all numbers in millions).

	Year 3		Year 2
Net income	$1,526		$1,486
Interest expense	864		804
	Year 3		Year 2		Year 1
Total assets	$21,461		$21,620		$20,991
Total stockholders' equity	5,378		6,249		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 Macys for Years 2 and 3. Round your percentage answers to one decimal place.

Year 3	%
Year 2	%

b. Determine the return on stockholders equity for Macys for Years 2 and 3. Round your percentage answers to one decimal place.

Year 3	%
Year 2	%