Question
Please help with the following question: Starbucks reports net income for 2018 of $4,518.3 million. Its stockholders' equity is $5,450.1 million and $1,169.5 million for
Please help with the following question:
Starbucks reports net income for 2018 of $4,518.3 million. Its stockholders' equity is $5,450.1 million
and $1,169.5 million for 2017 and 2018, respectively.
a. How do you compute its return on equity for 2018?
b. Starbucks repurchased over $7,208.7 million of its common stock in 2018. Did this repurchase in
crease or decrease Starbucks' ROE?
c. If Starbucks had not repurchased common stock in 2018, what would ROE have been?
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Analysis for Financial Management
Authors: Robert C. Higgins
12th edition
1259918963, 9781260140729 , 978-1259918964
