Gap is a close competitor of Deckers Outdoor and Wolverine in the teenage apparel industry. Gap also
Question:
Required:
1. Calculate the return on equity for Gap 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 Gap 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 Gap, Deckers Outdoor, and Wolverine so much lower than the return on equity?
4. Calculate the price-earnings ratio for Gap in 2012. How does it compare with the price-earnings ratio for Deckers Outdoor and Wolverine reported in thechapter?
Step by Step Answer:
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann