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Starbucks reports net income for 2 0 1 5 of $ 2 , 9 5 6 . 4 million. Its stockholders' equity is $ 6
Starbucks reports net income for of $ million. Its stockholders' equity is $ million and $ million for and respectively.
a Compute its return on equity for
Round answer to one decimal place ex:
b Starbucks repurchased over $ billion of its common stock in Did this repurchase increase or decrease Starbucks' ROE?
ROE usually decreases since the repurchase of shares reduces the denominator avg stockholders' equity
ROE usually increases since the repurchase of shares reduces the denominator avg stockholders' equity
ROE usually increases since the repurchase of shares increases the denominator avg stockholders' equity
ROE usually decreases since the repurchase of shares increases the denominator avg stockholders' equity
c If Starbucks had not repurchased common stock in what would ROE have been?
Note: Round answer to one decimal place example:
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