Starbucks reports a net income for 2018 of $4,518.3 million. its stockholders’ equity is $5,450.1 million and $1,169.5 million for 2017 and 2018, respectively. a. compute its return on equity for 2018. b. Starbucks repurchased over $7,208.7 million of its common stock in 2018. The following are the answers:
a. 136.5%
b. ROE usually increases since the repurchase of shares reduces the denominator (avg. stockholders' equity).
c. 65.3%
Starbucks Corporation is a Seattle, Washington-based global American chain of coffee shops and roasteries. It is the biggest chain of coffee shops in the world. The corporation operated 33,833 locations as of November 2021, with 15,444 of those being in the United States.
Over 8,900 of Starbucks' U.S. locations are company-operated, and the remaining ones are licensed.
Starbucks, which offered a larger range of coffee experiences, is often blamed for the growth of the second wave of coffee culture. Starbucks offers hot and cold beverages, espresso, caffe latte, full and loose-leaf teas, juices, Frappuccino drinks, pastries, and snacks.
Whole-bean coffee, micro-ground instant coffee, juices, and pastries are also available. Some products are available only during certain seasons or in a certain area. The majority of locations offer free Wi-Fi internet access, depending on the nation.
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