In early 2018, Adidas (ADS) had a book equity of $1397 million, a price per share of

Question:

In early 2018, Adidas (ADS) had a book equity of $1397 million, a price per share of $24.68, and 69.52 million shares outstanding. At the same time, Nike (NKE) had a book equity of

$3000 million, a share price of $41.86, and 422.62 million shares outstanding.

a. What is the market-to-book ratio of each of these clothing retailers?

b. What conclusions can you draw by comparing the two ratios?

AppendixLO1

Step by Step Answer:

Related Book For  book-img-for-question

Corporate Finance The Core

ISBN: 9781292431611

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

Question Posted: