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How did the repurchase affect starbucks roe

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Reference no: EM132524985

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.

Question a. Compute its return on equity for 2015.

Question b. Starbucks repurchased over $1.4 billion of its common stock in 2015. How did this repurchase affect Starbucks' ROE?

Question c. Why do you think a company like Starbucks repurchases its own stock?

Reference no: EM132524985

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