Financial Accounting CP2

Financial Accounting CP2 - Financial Accounting Liza...

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Financial Accounting Liza Semenova, Stephanie Schaeberle, Greg Frink, Mike Stack, Kyle Turcotte 09/20/10 CP2-3 CP3-3 1. Comparing Companies within an Industry Financial Leverage Ratio: Average Total Assets/Average Total Stockholders Equity a. American Eagle: 1796566500/128643200 = 1.397 1.40 b. Urban Outfitters: 834228000/618081500=1.35 These two companies are financing assets with less debt then the industry average. If the company were to purchase space, their assets would increase therefore increasing their financial leverage ratio which means that the companies would be operating with more debt and with a higher risk level. 2. Repurchasing Stock a. In 2007, Urban Outfitters repurchased: $ 20,801,000 b. In 2007, American Eagle Outfitters repurchased: 146,485,000 + 7,635,000 = $154,120,000 3. Paid Dividends of: a. In 2007, Urban Outfitters did not pay dividends in 2007. b. In 2007, American Eagle Outfitters paid dividends of: $61,521. 4.
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This note was uploaded on 10/19/2010 for the course ACCT 400 taught by Professor M during the Spring '10 term at William & Mary.

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Financial Accounting CP2 - Financial Accounting Liza...

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