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.
ANF Book Equity=$1,291 ANF Price Per Share=$21.67 ANF Number of shares=65.43 million
GPS Book Equity=$2542 GPS Price Per Share=$25.09 ANF Number of shares=395.48 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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International Financial Reporting Standards An Introduction
Authors: Belverd E. Needles, Marian Powers
3rd Edition
1133187943, 978-1133187943
