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. Book Equity Price Per Share Number of Shares ANF $1,294 $2,547 $20.38 66.22 million GPS $24.37 399.49 million a. What is the market-to-book ratio of each company? b. What conclusion do you draw from comparing the two ratios? a. What is the market-to-book ratio of each company? The market-to-book ratio for ANF is (Round to two decimal places.) The market-to-book ratio for GPS is (Round to two decimal places.) b. What conclusion do you draw from comparing the two ratios? (Select from the drop-down menus.) It implies that the market has more favorably outlook on V than on
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. Book Equity Price Per Share Number of Shares ANF $1,294 $2,547 $20.38 66.22 million GPS $24.37 399.49 million a. What is the market-to-book ratio of each company? b. What conclusion do you draw from comparing the two ratios? a. What is the market-to-book ratio of each company? The market-to-book ratio for ANF is (Round to two decimal places.) The market-to-book ratio for GPS is (Round to two decimal places.) b. What conclusion do you draw from comparing the two ratios? (Select from the drop-down menus.) It implies that the market has more favorably outlook on V than on
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text: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.
Book Equity
Price Per Share
Number of Shares
$1,294
$20.38
$24.37
ANF
66.22 million
GPS
$2,547
399.49 million
a. What is the market-to-book ratio of each company?
b. What conclusion do you draw from comparing the two ratios?
a. What is the market-to-book ratio of each company?
The market-to-book ratio for ANF is
(Round to two decimal places.)
The market-to-book ratio for GPS is
(Round to two decimal places.)
b. What conclusion do you draw from comparing the two ratios? (Select from the drop-down menus.)
It implies that the market has a more favorably outlook on
than on
Expert Solution
Step 1
The market-to-book ratio helps to identify the market value of a firm relative to its book value. A higher ratio suggests that the market has a favorable outlook for the firm.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education