In early $2015$, Abercrombie & Fitch (ANF) had a book equity of $\$ 1390$ million, a price per share of $\$ 25.52$, and $69.35$ million shares outstanding. At the same time, The Gap (GPS) had a book equity of $\$ 2983$ million, a share price of $\$ 41.19$, and $421$ 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?

Assume the definition of class bagType as given in previous Exercise. Answer the following questions: a. Write the definition of the member function set so that private members are set according to the parameters. b. Write the definition of the member function print that prints the values of the data members. c. Write the definition of the default constructor of the class bagType so that the private member variables are initialized to "", 0.0, 0.0, 0.0, 0.0, respectively. d. Write a C++ statement that prints the value of the object newBag. e. Write a C++ statement that declares the object tempBag of type bagType, and initializes the member variables of tempBag to "backPack", 15, 8, 20, and 49.99, respectively.

Determine the financial statement on which the item below appears. Use I for income statement. E for statement of owner's equity, and B for balance sheet.
 Wages Payable

Consider the following declaration:

template <class type>
class strange
{
    .
    .
    .
private:
    type a;
    type b;
};

Assume that two objects of type strange are equal if their corresponding member variables are equal. Write the definition of the function operator== for the class strange, which is overloaded as a member function.

Assume the following relationships for the Caulder Corp.: $$ \begin{matrix} \text{Sales/Total assets} & \text{1.3 }{\times}\\ \text{Return on assets (ROA)} & \text{4.0\\%}\\ \text{Return on equity (ROE)} & \text{8.0\\%}\\ \end{matrix} $$ Calculate Caulder’s profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital.

Stock dividend: Firm Columbia Paper has the following stockholders' equity account. The firm's common stock has a current market price of $30 per share.

Preferred stock	$100,000
Common stock ( 10,000 shares at $2 par)	20,000
Paid-in capital in excess of par	280,000
Retained earnings	100,000
Total stockholders' equity	$500,000

a. Show the effects on Columbia of a 5% stock dividend.

Best Buy Co., Inc., reported the following amounts in its February 3, 2018, and January 28, 2017, financial statements.

($millions)	2018	2017
Sales revenue	$42,151	$39,403
Cost of sales	32,275	29,963
Net income (loss)	1,000	1,228
Total assets	13,049	13,856
Stockholders' equity	3,612	4,709

Compute Best Buy's debt-to-equity ratio as of February 3, 2018.

a. Show that the logistic function $f(x)=\frac{N}{1+A b^{-x}}$ can be written in the form $f(x)=\frac{N b^{x}}{A+b^{x}}$. b. Use the result of part (a) and a suitable substitution to show that $\int \frac{N}{1+A b^{-x}} d x=\frac{N \ln \left(A+b^{x}\right)}{\ln b}+C$. The rate of graduation of private high school students in the United States for the period 1994-2008 was approximately $r(t)=220+\frac{110}{1+3.8(1.27)^{-t}}$ thousand students per year $(0 \leq t \leq 14)$ t years since 1994. Use the result of part (b) to estimate the total number of private high school graduates over the period 2000-2008.

Use the formulas in the How To box: Prepare a Balance Sheet to explain the formula: Total current assets $+$ total plant and equipment $=$ total liabilities $+$ total owner's equity.

The McGee Corporation finds it is necessary to determine its marginal cost of capital. McGee's current capital structure calls for 40 percent debt, 30 percent preferred stock, and 30 percent common equity. Initially, common equity will be in the form of retained earnings $\left(K_e\right)$ and then new common stock $\left(K_n\right)$. The costs of the various sources of financing are as follows: debt, $9.6$ percent; preferred stock, $9.0$ percent; retained earnings, $10.0$ percent; and new common stock, $11.4$ percent. What is the initial weighted average cost of capital? (Include debt, preferred stock, and common equity in the form of retained earnings, $K_e$.)

Determine the financial statement on which the item below appears. Use I for income statement. E for statement of owner's equity, and B for balance sheet.
 Owner Withdrawals

Once Bitten Corp. applies no debt. The weighted average cost of capital is 9.5 percent. If the current market value of the equity is $20.4 million and there are no taxes, what is EBIT?

At the moment, Charter Enterprises is entirely funded by equity and has assets worth $1 million. It's thinking about altering its capital structure. Calculate the debt and equity balances that would exist if the company switched to the following debt ratios: 10%, 20%, 30%, 40%, 50%, 60%, and 90%. (Note: The total number of assets would remain the same.) Does the debt ratio have a maximum value?

The following information was taken from Einar Company’s balance sheet:

$$\begin{array}{llr} \text{Fixed assets (net)}&\text{\$1,800,000}\\ \text{Long-term liabilities}&\text{600,000}\\ \text{Total liabilities}&\text{900,000}\\ \text{Total stockholders’ equity}&\text{750,000}\\ \end{array}$$

Determine the company’s (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders’ equity.