90.2K

Verified Solution

Link Copied!

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. ANF Book Equity $1,292 $2,550 Price Per Share $14.59 $24.79 Number of Shares 68.34 million 394.37 million GPS 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 ound to two decimal places.) In fiscal year 2017, Wal-Mart Stores (WMT) had revenue of $500.34 billion, gross profit of $126.95 billion, and net income of $9.86 billion. Costco Wholesale Corporation (COST) had revenue of $129.0 billion, gross profit of $17.14 billion, and net income of $2.68 billion. a. Compare the gross margins for Walmart and Costco. b. Compare the net profit margins for Walmart and Costco. c. Which firm was more profitable in 2017? a. Compare the gross margins for Walmart and Costco. The gross margin for Walmart is %. (Round to two decimal places.) Chutes & Co. has interest expense of $1.85 million and an operating margin of 11.7% on total sales of $30.9 million. What is Chutes' interest coverage ratio? The interest coverage ratio is times. (Round to one decimal place.) Ladders, Inc. has a net profit margin of 5.9% on sales of $48.8 million. It has book value of equity of $39.6 million and total book liabilities of $29.1 million. What is Ladders' ROE? ROA? Note: Assume the value of Interest Expense is equal to zero. What is Ladders' ROE? Ladders' ROE is %. (Round to two decimal places.)

Answer & Explanation Solved by verified expert

See Answer