Green Grasshopper Incorporated is interested in assessing the following scenarios on its indicators of profitability. Solve each scenario independently.
a. Green Grasshopper has taken significant steps to decrease expenses and expects its net income to increase by $ 6 million to $ 54 million. If its profit margin is 7.5%, what will the profit margin be after considering the decreased expenses?
b. Green Grasshopper has taken significant steps to decrease expenses and expects its net income to increase by $ 6 million to $ 54 million. If its average total assets are $ 490 million, what will its return on assets be?