Compute its return on equity

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Computing Return on Equity

Starbucks reports net income for 2012 of $1,383.8 million. its stockholders' equity is $4,387.3 million and $5,114.5 million for 2011 and 2012, respectively.

a. Compute its return on equity for 2012.

b. Starbucks repurchased over $501 million of its common stock in 2012. how did this repurchase affect starbucks' rOe?

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

Reference no: EM131095823

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