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In early 20162016​, the following information was true about Abercrombie and Fitch​ (ANF) and The Gap​...

In early

20162016​,

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 comma 2941,294

​$21.8521.85

65.3965.39

million

GPS

​$2 comma 5462,546

​$25.1825.18

395.38395.38

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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