In early 2018, Abercrombie & Fitch (ANF) had a book equity of

$ 1 comma 256$1,256

million, a price per share of

$ 22.49$22.49,

and

67.767.7

million shares outstanding. At the same time, The Gap (GPS) had a book equity of

$ 3 comma 149$3,149

million, a share price of

$ 32.08$32.08,

and

393393

million shares outstanding.

a. What is the market-to-book ratio of each of these clothing retailers?

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

a. What is the market-to-book ratio of each of these clothing retailers?