East Point Retail, Inc., sells professional women's apparel through company-owned retail stores. Recent financial information for...

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East Point Retail, Inc., sells professional women's apparel through company-owned retail stores. Recent financial information for East Point is provided below (all n in thousands). Net income: Interest expense Total assets Total stockholders' equity Fiscal Year 3 Fiscal Year 2 $158,700 3,200 $81,700 12,200 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 $1,594,470 1,033,638 $1,434,562 761,966 $1,676,238 1,054,520 Assume the apparel industry average rate earned on total assets is 5.0%, and the average rate earned on stockholders' equity is 8.0% for the year ended Februa Year 3. a. Determine the rate earned on total assets for East Point for fiscal Years 2 and 3. Round to one decimal place. Fiscal Year 3 Fiscal Year 2 % % b. Determine the rate earned on stockholders' equity for East Point for fiscal Years 2 and 3. Round to one decimal place. Fiscal Year 3 Fiscal Year 2 % % c. The rate earned on stockholders' equity is d. During fiscal Year 3, East Point's results were leverage than the industry, on average. the rate earned on total assets due to the use of leverage. compared to the industry average. These relationships suggest that East Point has East Point Retail, Inc., sells professional women's apparel through company-owned retail stores. Recent financial information for East Point is provided below (all n in thousands). Net income: Interest expense Total assets Total stockholders' equity Fiscal Year 3 Fiscal Year 2 $158,700 3,200 $81,700 12,200 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 $1,594,470 1,033,638 $1,434,562 761,966 $1,676,238 1,054,520 Assume the apparel industry average rate earned on total assets is 5.0%, and the average rate earned on stockholders' equity is 8.0% for the year ended Februa Year 3. a. Determine the rate earned on total assets for East Point for fiscal Years 2 and 3. Round to one decimal place. Fiscal Year 3 Fiscal Year 2 % % b. Determine the rate earned on stockholders' equity for East Point for fiscal Years 2 and 3. Round to one decimal place. Fiscal Year 3 Fiscal Year 2 % % c. The rate earned on stockholders' equity is d. During fiscal Year 3, East Point's results were leverage than the industry, on average. the rate earned on total assets due to the use of leverage. compared to the industry average. These relationships suggest that East Point has