Computing return on equity

Reference no: EM131947401

Computing Return on Equity

Starbucks reports net income for 2015 of $2, 757.4 million. Its stakeholders' equity is $5,272 million and $5,818 million for 2014 and 2015, respectfully.

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?

Reference no: EM131947401

Questions Cloud

What is the beta of the resulting portfolio : You invest 0.5% of your capital in stock A, and the rest in stock B. What is the beta of the resulting portfolio?

Traditional economics to work for healthcare : 1. What do consumers need in order for traditional economics to work for healthcare?

Explain the use of current technologies : Explain to the university (in a whitepaper) the characteristics of high-tech crime also known as Internet, cyber, and computer crime.

Compare the ideas on hrm of the future : Compare and contrast the ideas on HRM of the future that you have learned about with what you know of HRM today.

Computing return on equity : Compute its return on equity for 2015. Why do you think a company like Starbucks repurchases its own stock?

How is drug court different from a regular criminal court : Describe drug court. How is drug court different from a regular criminal court? What are some of the advantages for a person to be enrolled in drug court?

Outside auditors play in preventing and detecting fraud : What is fraud? What roles do management and outside auditors play in preventing and detecting fraud as it relates to financial reporting?

Concentration ratio indicates a loose oligopoly market : A high concentration ratio indicates a tight oligopoly market, and a low concentration ratio indicates a loose oligopoly market.

Explain the concept of authentication : All documents that are introduced as evidence in court must be authenticated. Explain the concept of authentication.

User Account

All Pages