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
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Related Book For
Corporate Finance The Core
ISBN: 9781292431611
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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