E1-40. Computing Return on Equity Starbucks reports net income for 2015 of $2,757.4 million. Its stockholders' equity is $5,272 million and $5,818 million for 2014 and 2015, respectively. a. Compute its return on equity for 2015. b. Starbucks repurchased over $1.4 billion of its common stock in 2015. How did this repurchase affect Starbucks' ROE? c. Why do you think a company like Starbucks repurchases its own stock?

E1-40. Computing Return on Equity Starbucks reports net income for 2015 of $2,757.4 million. Its stockholders' equity is $5,272 million and $5,818 million for 2014 and 2015, respectively. a. Compute its return on equity for 2015. b. Starbucks repurchased over $1.4 billion of its common stock in 2015. How did this repurchase affect Starbucks' ROE? c. Why do you think a company like Starbucks repurchases its own stock?

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 17E

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