Book Equity $($$ million$)$ Price per Share $($$$)$ Number of Shares $($million$)$

ANF $83038\mathrm{.}6749\mathrm{.}56$

GPS $2,72317\mathrm{.}53371\mathrm{.}14$In early $2022,$ the following information, $,$ was true about Abercrombie and Fitch $($ANF$)$ and The Gap $($GPS$),$ both clothing retailers. Values $($except price

per share$)$ are in millions of dollars.

a$.$ What is the market$-$to$-$book ratio of each company?

b$.$ What conclusion do you draw from comparing the two ratios?

a$.$ What is the market$-$to$-$book ratio of each company?

The market$-$to$-$book ratio for ANF is $($Round to two decimal places.$)$

The market$-$to$-$book ratio for GPS is $.($Round to two decimal places.$)$

b$.$ What conclusion do you draw from comparing the two ratios?

It implies that the market has a more favorably outlook on

than on

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