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3 years ago

starbucks repurchased over 1.4 billion of its common stock in 2015. did this repurchase increase or decrease roe

1 answer:

8 0

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.

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Offering to pay the passenger in front of you to keep her from reclining her airplane seat is an example of a Pigovian solution

Blizzard [7]

Answer:

a Coasian solution to an externality situation.

Explanation:

Basically. a Coasian solution to an externality situation occurs when the economic activities of one party results in a damage or cost to another party or their property. In this situation, the Coase Theorem which recommends two possible settlements may be applied. The first settlement is for the party causing the damage or imposing the cost to choose to give financial compensation to the affected party so that he can continue to impose the cost or cause the damage. The second settlement is for the affected party to pay the party causing the damage or imposing the cost so that he can stop causing the damage or imposing the cost.

From the question, the affected person chose the second possible settlement by offering to pay the passenger in front of him to keep her from reclining her airplane seat. It is therefore an example of a Coasian solution to an externality situation.

3 0

3 years ago

Which of the following is a way to recognize potentially disruptive innovations?

TEA [102]

Answer:

B. Seeking the opinions of venture capitalists, research academics, and passionate internal engineering staff.

Explanation:

Seeking the opinions of venture capitalists, research academics, and passionate internal engineering staff is a way to recognize potentially disruptive innovations.

7 0

3 years ago

In an assembly line of a factory that makes gears, it takes fifteen minutes to complete a drilling operation using a lathe. The

Citrus2011 [14]

Answer: processing time

Explanation:

It is the duration or time taken in processing something or completing the process involved in turning a raw material into a finished product. During this period most businesses always look for ways to minimize the duration without affecting the quality of the final product to a level where it will affect sales or patronage.

4 0

4 years ago

1. Read the information in the chart about two trading partners. Then answer the question that follows. Based on the information

alex41 [277]

Answer:

1. Read the information in the chart about two trading partners. Then answer the question that follows. Based on the information in the chart, which of the following is correct? Select all that apply.

A) Country X should specialize in automobiles and Country Y should specialize in airplanes.

D) Country X has both an absolute and a comparative advantage in the production of automobiles.

E) Country Y has a comparative advantage in the production of airplanes.

2. While the balance of payments involves a record of all transactions between individuals, businesses, and the government within a particular country, the balance of trade deals solely with

C) imports and exports

3. Read the passage. Then answer the question that follows.

In 2013, the United States negotiated a new trade deal with Japan in the hope of increasing US rice manufacturers' access to the valuable Japanese consumer market. The Japanese increased the amount of rice that it would import at a low import tax rate to 682,000 metric tons, while any rice imported from the United States over that amount would be subject to a much higher import tax.

This trade policy represents the implementation of a combination of what two types of economic barriers to trade?

D) tariffs and a quota

4. How do economic barriers to trade impact countries that enact them? Select all that apply.

C) by limiting consumer choice

E) by causing prices of domestic goods to rise

5. Why do some people oppose free trade agreements?

B) Free trade agreements usually require countries to reduce trade barriers that protect domestic industries.

6. Use the table of currency exchange rates to answer the question.

A family from Zimbabwe, which uses the US dollar as its official currency, is planning to travel. They want to go to the country where they will receive the MOST local currency for their dollars. Which country should they visit?

Kenya

7. Suppose the value of the Japanese yen appreciates relative to the US dollar. Who would this benefit? Select all that apply.

A) Japanese importers of goods from the United States

E) Japanese tourists visiting the United States

Explanation: Just took the test and these are what they say are the correct answers.

6 0

3 years ago

g after examining the various personal loan rates available to you, you find that you can borrow funds from a finance company a

IceJOKER [234]

question text WITH missing information:

After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at an APR of 12 percent compounded monthly or from a bank at an APR of 13 percent compounded annually. Which alternative is more attractive?

If you borrow $100 from a finance company at an APR of 9% percent compounded for year, how much do you need to payoff the loan?

Answer:

The finance company option is better as we are taking the loan we want the lower rate possible.

We need $109 to payoff the loan of $100 at 9% annualy after a whole year.

Explanation:

We solve for the effective rate of 12% compounded monthly

$(1+\frac{0.12}{12} )^{12}$ = 1.12682503 = 0.126825 = 12.6825%

As this rate is lower than 13% this option is better

If we take 100 dollars after a year we have to pay:

$100 x (1 + r) = 100 x (1 + 0.09) = 100 x 1.09 = $109

5 0

3 years ago