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.

Required:
1. Calculate the return on equity for American Eagle and Buckle for the most recent year. Which company is more profitable?
2. Determine the amount reported for basic earnings per share (or net income per share) for the most recent year for each company. Basic earnings per share are provided for each company near the bottom of the income statement.
3. Determine the amount of dividends per share for the most recent year for each company. Using your answers for requirement 2, which company has a higher ratio of cash dividends to earnings? Which company has more treasury stock purchases?