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In mid-2012, Abercrombie & Fitch (ANF) had a book equity of $1693 million, a price per share of $35

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In mid-2012, Abercrombie & Fitch (ANF) had a book equity of $1693 million, a price per share of $35.48, and 82.55 million shares outstanding. At the same time, The Gap (GPS) had a book equity of $3017 million, a share price of $27.90, and 489.22 million shares outstanding.

a.             What is the market-to-book ratio of each of these clothing retailers?

b.             What conclusions can you draw by comparing the two ratios?