Provide an estimate of the option overhang at that date

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Question: Reformulation of an Equity Statement and Accounting for the Exercise of Stock Options: Starbucks Corporation (Hard)

The statement of shareholders; equity below for Starbucks Corporation, the retail coffee vendor, is for fiscal year 2007.

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a. Reformulate the statement to distinguish comprehensive income from transactions with shareholders

b. Calculate the after-tax loss to shareholders from the exercise of stock options during the year.

c. The following information is provided in the equity footnote in the firms 10-K for 2007:

614_AP 1.png

At balance sheet date in 2007, Starbucks; shares traded at $28.57 each. Provide an estimate of the option overhang at that date.

Reference no: EM131490905

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