Question
In early 2016, the following information was true about Abercrombie and Fitch (ANF) and The Gap (GPS), both clothing retailers. Values (except price per share)
In early
2016,
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.
| Book Equity | Price Per Share | Number of Shares | |
| ANF | $1,294 | $21.07 | 68.73 million |
| GPS | $2,549 | $24.39 | 402.08 million |
a. What is the market-to-book ratio of each company?
b. What conclusion do you draw from comparing the two ratios?
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McMillan On Options
Authors: Lawrence G. McMillan
2nd Edition
0471678759, 978-0471678755
