Question: RWP 9 - 2 ( Static ) Financial Analysis: American Eagle Outfitters, Incorporated Financial information for American Eagle is presented in Appendix A at the

RWP9-2(Static) Financial Analysis: American Eagle Outfitters, Incorporated
Financial information for American Eagle is presented in Appendix A at the end of the book.
Required:
1-a. Calculate the debt to equity ratio for the past two years.
1-b. Did the ratio increase or decrease the more recent year?
2-a. Calculate the return on assets for the most recent year.
2-b. Does the return on assets exceed the cost of borrowing of approximately 4%?
3. Review the balance sheet and note 9 to the financial statements. Based on this information, how would you rate the bankruptcy risk of American Eagle?

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