East Point Retail, Inc., sells professional women's apparel through company-owned retail stores. Recent financial information for East Point is provided below (all numbers in thousands). 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 February 2 , 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 the rate earned on total assets due to the use of leverage. d. During fiscal Year 3, East Point's results were compared to the industry average. These relationships suggest that East Point has leverage than the industry, on average
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