Which is trading at a lower price per dollar of earnings

Assignment Help Finance Basics
Reference no: EM131522222

Question: Abercrombie & Fitch is a close competitor of Deckers Outdoor and Timberland in the apparel industry. Selected financial data for Abercrombie is provided as follows:

238_Equity.png

Required: 1. Calculate the return on equity for Abercrombie in 2009. How does it compare with the return on equity for Deckers Outdoor and Timberland reported in the chapter?

2. Calculate the return on the market value of equity for Abercrombie in 2009. How does it compare with the return on the market value of equity for Deckers Outdoor and Timberland reported in the chapter?

3. Why is the return on the market value of equity for Abercrombie, Deckers Outdoor, and Timberland so much lower than the return on equity?

4. Calculate the price-earnings ratio for Abercrombie in 2009. How does it compare with the price-earnings ratio for Deckers Outdoor and Timberland reported in the chapter? Which is trading at a lower price per dollar of earnings?

Reference no: EM131522222

Previous Q& A

  How do you think epigenetic will influence cancer prevention

How do you think epigenetics will influence cancer prevention and treatment?

  Factors that impact international distribution strategies

Analyze the elements that can influence international promotional strategies and the choice of portfolio offerings - Examine the factors that can impact international distribution strategies.

  Educate the members of community

Imagine that you have been asked to educate the members of your community on this environmental issue.

  The issue of clinical vs statistical significance

Explore these issues on the Internet and through other resources.Why are they useful in helping to determine clinical significance?

  Discuss the net income for the given year

Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2012, 100 shares of preferred stock and 2,000.

  Compute the aftertax cost of debt

The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Compute the aftertax cost of debt.

  Determining the environmental protection agency

The United States has laws to help protect the environment. These laws are enforced by the Environmental Protection Agency.

  Identification of the professional accounting

Identification of the professional accounting, management and/or public relations issues in your workplace

  Identify the five different types of toxins

Identify the five different types of toxins. Provide a brief discussion of the effects and include examples.

  Compute the payback period-the ARR-the NPV

Compute the payback period, the ARR, the NPV, and the approximate IRR of this investment.

Reviews

Write a Review

 

Similar Q& A

  Profitability index of the investment

You were offered an investment with returns of $2,579 in year 1, $4,681 in year 2, and $5,043 in year 3. The investment will cost you $6,247 today. If the appropriate Cost of Capital (quoted interest rate) is 8.1%, what is the Profitability Inde..

  Determine the appraised value

Determine the appraised value. A fire station, built four years ago, has an estimated life of 50 years. The building has 20,000 square feet and the cost to replace is $100 per square foot. The lot is worth $120,000 vacant.

  What is the value of one share

What is the total value of the company before and after the announcement, and what is the value of one share?

  Calculate the stock or porfolios excess returns and scl

Also what insights can be identified between analysing a stock and a portfolios performance just using weekly returns compared to analysing the stock and portfolio when you use a risk free asset to calculate the stock/porfolios excess returns and ..

  List three comparable firms for woolworths

List three comparable firms for Woolworths. Justify the inclusion of these companies in your list. Calculate P/E ratio and P/B ratio of the all the companies in your list (use fiscal year end data of 2015).

  Prepare a fundamental financial analysis of the firm

Prepare a fundamental financial analysis of the firm from its published financial statements. After selecting the firm and analyzing its most recently published annual report.

  Sales in the month of sale

ABC collects 42 percent of its sales in the month of sale and the remainder is collected in the following month. What is the amount of the February cash collections?

  How many shares of common stock can be obtained by convert

a. How many shares of common stock can be obtained by converting one $1,000 par value debenture; that is, what is the conversion ratio? b. What was the conversion value of this issue when these debentures were originally issued? c. By what percentage..

  Receive an annual retirement payment

EZ Leifer plans to retire at the age of 65 and believes he will live to be 90. EZ wants to receive an annual retirement payment of $ 50,000 at the beginning of each year. He sets up a retirement account that is estimated to earn 6 percent annually..

  The return on the market portfolio is 125 and the

bell weather inc. has a beta of 1.25. the return on the market portfolio is 12.5 and the risk-free rate is 5.

  A public project has the following costs and benefits in

a public project has the following costs and benefits in real dollars assume that 6 is the appropriate discount rate

  What is meant by an internal capital market when would you

what is meant by an internal capital market? when would you expect such a market to add value? when and why would it

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd