Starbucks reports net income for 2015 of $2,558.4 million. Its stockholders' equity is $5,716 million and $6,262 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%) Answer % b. Starbucks repurchased over $1.4 billion of its common stock in 2015. How did this repurchase affect Starbucks' ROE? ROE usually decreases since the repurchase of shares reduces the denominator (avg. stockholders' equity). ROE usually increases since the repurchase of shares reduces the denominator (avg. stockholders' equity). 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). c. Why do you think a company like Starbucks repurchases its own stock? Companies repurchase their own stock if they feel it overvalued by the market. Companies repurchase their own stock if they feel it undervalued by the market.
Yes, email would be a good choice of telling an employee that his/her sales have not been good.
As just sending a simple email is easy, fast and efficient and it gets the word to that employee as quick as possible
Answer:
Demand for
Increase
Explanation:
A normal good is a good whose demand increases when income rises and whose demand falls when income falls.
So if income is rising, the demand for the lettuce should increase.
I hope my answer helps you
Answer:
Developing research plan
Explanation:
This is the stage where you plan all you're set to achieve in the study. You itemize likely constraints you're to face in the field and how to tackle them, how you intend to collect your data, your intended respondents and everything needed to make the research process a success.
Answer:
Option 1
Explanation:
The computation is shown below:
For option 1
Dividend received in 6 month is
= $0.25 × 2
= $0.50
Now
Profit from the sale of stock is
= sale price - purchase price
= $24 - $20 i
= $4
So,
Net proceed received from stock is
= dividend + profit from the sale
= $0.50 + $4
= $4.50
Now
Holding period return for 6 months is
= (Net proceed received ÷ purchase price) ×100
= ($4.50 ÷ $20) × 100
= 22.5 %
So,
Annualized holding period return is
= 22.5% × 2
= 45%
For Option 2
Dividend received in 1 year is
= $0.50 × 4
= $2
Profit from sale of stock is
= $30 - $27
= $3
Net proceeds from stock is
= $2 + $3
= $5
So,
Annualized holding period return is
= ($5 ÷ $27) × 100
= 18.52%.
As we can see that option 1 contains higher return so it would be selected
