The financial statements of Limited Brands, Inc. , include the following selected data (in millions): ($ in

Question:

The of Limited Brands, Inc. , include the following selected data (in millions):
($ in millions) ...................................2009................ 2008
Sales........................................... $9,043............. $10,134
Net income ......................................$220................. $718
Stockholders' equity ........................$1,874............... $2,219
Shares outstanding (in millions) ...............321..................... -
Stock price ......................................$7.92 .....................-
Required:
1. Calculate the return on equity in 2009. Compare it with the amount calculated for Deckers Outdoor and Timberland in the chapter.
2. Calculate the return on the market value of equity in 2009. Compare it with the amount calculated for Deckers Outdoor and Timberland in the chapter.
3. Calculate earnings per share in 2009. Why is it not reasonable to compare it with the earnings per share for Deckers Outdoor and Timberland?
4. Calculate the price-earnings ratio in 2009. Compare it with the amount calculated for Deckers Outdoor and Timberland in the chapter.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...