Financial information for American Eagle is presented in Appendix A at the end of the book, and
Question:
Financial information for American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix B at the end of the book. The stock prices as of February 3, 2018, for American Eagle and Buckle were $17.56 and $19.60, respectively.
Required:
1. Calculate the return on equity for American Eagle and Buckle for the year ended February 3, 2018. Which company has a higher return on equity?
2. Calculate the dividend yield for American Eagle and Buckle for the year ended February 3, 2018. Which company has a higher dividend yield? Find dividends per share as total dividends divided by the number of shares outstanding shown in the balance sheet.
3. Calculate the price-earnings ratio on February 3, 2018, for American Eagle and Buckle. Basic earnings per share are provided for each company near the bottom of the income statement. Which is trading at a lower price per dollar of earnings?
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
answer 1 The return on equity for American Eagle for the year ended February 3 2018 is 164 ...View the full answer
Financial Accounting
ISBN: 978-1259914898
5th edition
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
