Financial information for American Eagle is presented in Appendix A at the end of the book, and

Question:

Financial information for American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix B at the end of the book. The stock prices as of January 31, 2015, for American Eagle and Buckle were $14.04 and $50.79, respectively.
Required:
1. Calculate the return on equity for American Eagle and Buckle for the year ended January 31, 2015. Which company has a higher return on equity?
2. Calculate the yield for American Eagle and Buckle for the year ended January 31, 2015. Which company has a higher yield?
3. Calculate the price-earnings ratio on January 31, 2015, for American Eagle and Buckle. Basic earnings per share are provided for each company near the bottom of the income statement. Which is trading at a lower price per dollar of earnings?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...