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

In early , 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 $1,292 $13.64 66.36 million

GPS $2,542 $24.67 398.32 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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