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Question - In response to complaints about high prices, a grocery chain runs the following advertising campaign: "If you pay your child $1.50 to go buy $50 worth of groceries, then your child makes twice as much on the trip as we do." You've collected the following information from the grocery chain's financial statements:
($ in millions)
Sales $680.0
Net income 10.2
Total assets 380.0
Total debt 270.0
Required -
a. What is the profit margin for child and store?
b. What is the store's ROE?
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