For this case, please refer to Appendix 1 for additional financial data for thes
ID: 2577508 • Letter: F
Question
For this case, please refer to Appendix 1 for additional financial data for these three companies.
1. Abercrombie & Fitch Co.
(52-week fiscal year ended January 29, 2011; 52-week fiscal year ended January 30, 2010)
"Abercrombie & Fitch Co (“A&F”), a company incorporated in Delaware in 1996, through its subsidiaries (collectively, A&F and its subsidiaries are referred to as “Abercrombie & Fitch” or the “Company”), is a specialty retailer that operates stores and directto-consumer operations."
Source:Abercrombie &Fitch 2010 10-K
2. Limited Brands, Inc.
(52-week fiscal year ended January 29, 2011; 52-week fiscal year ended January 30, 2010)
"We operate in the highly competitive specialty retail business. Founded in 1963 in Columbus, Ohio, we have evolved from an apparel-based specialty retailer to an approximately $10 billion segment leader focused on women’s intimate and other apparel, beauty and personal care product categories that make customers feel sexy, sophisticated and forever young"
Source: Limited Brands 2010 10-K
3. Gap, Inc.
(52-week fiscal year ended January 29, 2011; 52-week fiscal year ended January 30, 2010)
"The Gap, Inc. (the “Company”, “we”, and “our”) was incorporated in the State of California in July 1969 and was reincorporated under the laws of the State of Delaware in May 1988. We are a global specialty retailer offering apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brands."
Source: Gap Inc 2010 10-K
Required
For each of the three companies, calculate the following ratios for the year 2010 and 2011: (note : assume the year’s data as given is the average)
dividend yield
book value per share
market price per share
Explanation / Answer
DIVIDEND YIELD:
Dividend yield=(Dividend per share)/(Market price per share)
A&F Co.
LIMITED BRANDS
2011
2010
2011
2010
Dividend paid
$60,956,000
$61,656,000
$1,144,000,000
$1,488,000,000
Number of shares outstanding
87,985,519
87,635,615
323000000
321000000
Market price per share
Not available
Not available
Not available
Not available
GAP INC
2011
2010
Dividend paid
$236,000,000
$252,000,000
Number of shares outstanding
676000000
694000000
Market price per share
Not available
Not available
Since Market price data is not available Dividend Yield cannot be calculated
BOOK VALUE PER SHARE:
Book Value per share=(Shareholders’ Equity)/(Number of shares outstanding)
A&F Co.
LIMITED BRANDS
2011
2010
2011
2010
Shareholders equity
$60,956,000
$61,656,000
$1,144,000,000
$1,488,000,000
Number of shares outstanding
87,985,519*
87,635,615*
323000000
321000000
Book value per share
$0.69
$0.70
$3.54
$4.64
A& F Co.
*Number of shares outstanding in 2011=Number of shares issued-number of shares in treasury stock=(103300000-15314488)=87,985,519
*Number of shares outstanding in 2010=Number of shares issued-number of shares in treasury stock=(103300000-15664385)=87,635,615
GAP INC
2011
2010
Shareholders equity
$236,000,000
$252,000,000
Number of shares outstanding
676000000
694000000
Book value per share
$0.35
$0.36
MARKET PRICE PER SHARE:
Relevant information is not available
A&F Co.
LIMITED BRANDS
2011
2010
2011
2010
Dividend paid
$60,956,000
$61,656,000
$1,144,000,000
$1,488,000,000
Number of shares outstanding
87,985,519
87,635,615
323000000
321000000
Market price per share
Not available
Not available
Not available
Not available
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