Refer to the financial statements of Abercrombie & Fitch and Aeropostale that are supplied with this text.

Question:

Required:
1. Both Abercrombie & Fitch (Note 13) and Aeropostale (Note 15) have notes that discuss contingencies. What contingencies do they disclose? Do you think any of these contingencies are included in the income statement or on the balance sheet? Why or why not?
2. Calculate Abercrombie & Fitch's and Aeropostale's dividend yield and dividend payout for the years ended February 3, 2007 and January 28, 2006.
3. Calculate Abercrombie & Fitch's and Aeropostale's total payout and stock repurchase payout for the years ended February 3, 2007 and January 28, 2006.
4. Compare Abercrombie & Fitch's and Aeropostale's stockholder payouts based on the values and trends identified in these stockholder payout ratios.
5. Calculate Abercrombie & Fitch's and Aeropostale's return on common equity and earnings per share for the years ended February 3, 2007 and January 28, 2006.
6. Compare the values and trends of these stockholder profitability ratios for Abercrombie & Fitch andAeropostale.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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...