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In early 20162016, the following information was true about Abercrombie and Fitch (ANF) and The Gap (GPS), both clothing retailers. Values (except price per share)

In early

20162016,

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 Price Per share Number of Shares

1,291 $26.35 67.59 million

GPS 2,545 $24.74 397.14 million

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

The market-to-book ratio for ANF is_____

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

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