Acct5301 E1.30.Rand.D
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Uploaded by ColonelCamel3597
3] & eBook 8 Print Queston3 Comect Mark1.000utof 100 P Flag question Computing Return on Equity Starbucks reports net income for 2015 of $2,956.4 million. Its stockholders' equity is $6,527 million and $7,073 million for 2014 and 2015, respectively. a. Compute its return on equity for 2015, Round answer to one decimal place (ex: 0.2345 = 23.5%) 435 v b. Starbucks repurchased over $1.4 billion of its common stock in 2015. Did this repurchase increase or decrease Starbucks' ROE? ROE usually decreases since the repurchase of shares reduces the denominator (ave. stockholders' equity). ROE usually increases since the repurchase of shares reduces the denominator (avg stockholders’ equity).v* 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).
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