In response to complaints about high prices, a grocery chain runs the following advertising campaign: If you
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In response to complaints about high prices, a grocery chain runs the following advertising campaign: "If you pay your child $3 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:
(Millions)
Sales......................$750
Net income................22.5
Total assets................420
Total debt..................280
Evaluate the grocery chain's claim. What is the basis for the statement? Is this claim misleading? Why or why not?
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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