Abercrombie, like Deckers Outdoor and Wolverine, operates in the apparel industry. Selected financial data for Abercrombie is provided as follows:

Required:
1. Calculate the return on equity for Abercrombie in 2012. How does it compare with the return on equity for Deckers Outdoor and Wolverine reported in the chapter?
2. Calculate the return on the market value of equity for Abercrombie in 2012. How does it compare with the return on the market value of equity for Deckers Outdoor and Wolverine reported in the chapter?
3. Why is the return on the market value of equity for Abercrombie, Deckers Outdoor, and Wolverine so much lower than the return on equity?
4. Calculate the price-earnings ratio for Abercrombie in 2012. How does it compare with the price-earnings ratio for Deckers Outdoor and Wolverine reported in thechapter?

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$ in millions) Sales Net income Total assets Total liabilities Stockholders' equity 2012 $4,158 144 $3,117 $1,186 1.931 2011 2,941 $1,051 1,890 Total liabilities and stockholders' equity $3,11 $2941 Average shares outstanding in milions) Stock price, ending 85.6 $47.23