Refer to the financial statements of American Eagle (Appendix B) and Urban Outfitters (Appendix C) and the

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Refer to the financial statements of American Eagle (Appendix B) and Urban Outfitters (Appendix C) and the Industry Ratio Report (Appendix D) at the end of this book. Compute the following ratios for the most recent reporting year for which you have available information: return on equity, earnings per share, profit margin, current ratio, inventory turnover, debt/equity ratio, price/earnings ratio, and dividend yield. Assume the stock price is $28 for Urban Outfitters and $15 for American Eagle. Compare the ratios for each company to the industry average ratios.

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...
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